28th May 2014 07:31
LONDON (Alliance News) - Minoan Group PLC Wednesday said it has raised GBP687,000 before expenses by placing shares with institutional and other investors, as it looks to pursue acquisitions and support its development.
In a statement, the AIM-listed travel and leisure company, headquartered in Glasgow, said it raised the proceeds through a placing of 5.7 million new shares at 12 pence each. The placing, orchestrated by WH Ireland Group PLC, is conditional upon the shares' admission to AIM.
Minoan said it intends to use the proceeds to provide general working capital to support its development, including its resort project in Crete, and, together with other resources, make further acquisitions.
In March, Minoan Group acquired Martin Singer Travel, an independent business near Aberdeen Airport, in a deal worth GBP250,000. On Wednesday, the travel and leisure company said it has actively pursued further acquisitions since then, is currently in "advanced discussions" with a number of potential targets, while other candidates have also been identified.
"Potential acquisitions the subject of advanced discussions range in annual historical revenues from GBP200,000 to over GBP30.0 million, with commission rates and operating profit margins reflective of the travel agency and leisure sector," Minoan Group said in a statement.
"Further, prospective acquisition targets have been identified with annual historical revenues of up to GBP90.0 million," Minoan said, adding that it is committed to rigorous acquisition criteria.
Minoan Group shares were Wednesday quoted at 12.50 pence, down 8.3%.
By Samuel Agini; [email protected]; @samuelagini
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