4th Nov 2015 08:21
LONDON (Alliance News) - Specialist asset manager Gresham House PLC Wednesday said it has struck a deal to acquire one of the leading managers of UK commercial forestry, Aitchesse Ltd, for up to GBP7.7 million.
Gresham said the acquisition was a "significant milestone" for the company and marks the launch of its Gresham House Real Assets division. It also means the company will become a trading company and will no longer be subject to AIM rules related to investment companies.
Gresham will fully acquire the Aitchesse for GBP4.0 million upfront made up of USD1.8 million in cash, GBP700,000 of short term loan notes and GBP1.5 million in Gresham shares valued at 298.5 pence each, which was based on the last reported net asset value of Gresham at the end of June.
The remaining GBP3.7 million will be paid based on Aitchesse successfully hitting performance targets between July 1, 2015 and February 28, 2018. That GBP3.7 million would be comprised of GBP1.5 million in cash and GBP2.2 million in shares.
No details on the performance targets were released.
Gresham shareholders will need to approve the deal at a general meeting on November 20, when the company will also seek shareholder approval to "implement a long term incentive plan" to "align the interests of shareholders and management in the long-term success of the company," it said.
Gresham is also in negotiations with two banks about securing a new bank facility, and has received a credit committee approved letter offering facilities from both unnamed banks. It is hoping to get a GBP7.0 million facility with an interest rate of 5.25% per year.
Gresham shares were untraded on Wednesday, last trading at 328.30 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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