1st Jul 2019 17:23
(Alliance News) - H&T Group PLC said on Monday it intends to raise GBP6.0 million via a share placing in order to carry out an acquisition.
The pawnbroker said it plans to buy 65 trading stores and a further 29 pledge books from The Money Shop, the trading name for Instant Cash Loans Ltd and TM Sutton Ltd.
The initial cash condition is around GBP10.6 million, of which GBP1.8 million is subject to certain conditions and deferred for up to twelve months. In addition to this consideration, around GBP4.0 million of working capital and cash is required on completion to fund the operation of the stores.
H&T intends to fund the deal through its existing bank facilities and via a placing to raise GBP6.0 million.
The placing is being conducted via an accelerated bookbuild, with pricing to be decided at the bookbuild's close.
Completion of the acquisition of the trading stores - but not the pledge books - is conditional only upon completion of the placing.
"This is an important acquisition to continue our growth in the alternative credit sector and to establish H&T as one of the UK's leading providers of financial services," said Chief Executive John Nichols.
"These new stores fill geographical gaps in our UK coverage not only from a high street presence but assists our digital fulfilment of our product range," he added.
H&T added that year-to-date trading is in line with expectations, with demand for "small, simple" short term loans remaining strong.
Shares in H&T closed down 3.1% at 316.00 pence on Monday in London.
Related Shares:
H&t Group Plc