23rd Apr 2014 09:43
LONDON (Alliance News) - Porta Communications PLC Wednesday said it has bought a 51% stake in London-based financial PR firm Redleaf Polhill Ltd for GBP1.8 million.
The AIM-quoted marketing and communications group said it acquired the majority stake from Redleaf Polhill's shareholders Emma Kane, Ian Rosenblatt and Julian Polhill, and said it also has the option to acquire the remaining 49% over the next three years.
The acquisition of the 51% stake was paid for with GBP897,500 in cash and through the issue of 7.0 million new Porta shares. It said that any additional consideration payable under the option to buy the remainder of Redleaf Polhill also will be satisfied by 50% in cash and 50% in shares.
Porta Communications shares were up 0.1% at 13.51 pence per share.
Porta Communications said the London-based PR firm will become part of its public relations division but will continue to be run as an independent agency by its existing team and will retain the Redleaf brand.
For the year ended November 30, 2013, Redleaf reported an operating profit of around GBP610,000, although after an exceptional write down of a related-party loan, it made a loss after tax in the period of GBP290,000.
The company said it expects the acquisition to be earnings enhancing within its first full year.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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