26th Apr 2018 16:12
LONDON (Alliance News) - Satellite Solutions Worldwide Group PLC on Thursday announced a GBP12.0 million share placing to part-fund two acquisitions.
Satellite Solutions is to place shares at 8.50 pence, which it said was a 4.3% premium to its closing price on Wednesday. Based on the price, this suggest it is placing 141.2 million shares.
Shares on Thursday were up 4.2% at 8.49 pence each.
Of the money, GBP3.5 million will go towards buying Italian satellite broadband firm Open Sky SRL and GBP4.4 million for German satellite broadband company Sat Internet Services GmbH. The total consideration for the two is EUR11.0 million.
The rest will be used for general working capital and possible future acquisitions as well as acquisition, placing, and share admission fees.
Satellite Solutions also said it is to increased its GBP5.0 million facility with HSBC Holdings PLC by GBP3.3 million for bolt-on acquisitions and working capital purposes.
Chief Executive Andrew Walwyn said: "This is a significant landmark in the company's development and ensures that we are strongly positioned to continue to drive growth. Both Open Sky and Sat Internet are high quality businesses and we look forward to working with them as part of a significantly enlarged group.
"Both will form new hubs for the business with operations in Italy, Germany and Portugal, which we view as attractive growth markets. The acquisitions are earnings enhancing and we believe we can deliver further shareholder value by securing bolt-on acquisitions within these territories as well as within SSW's existing regions."