2nd Jun 2015 07:22
LONDON (Alliance News) - Share PLC saw its shares fall early Tuesday after it said Executive Chairman Gavin Oldham was offering up to EUR5 million of shares for sale at 33 pence each to raise funds to invest in the Share Radio station he launched in November last year.
The owner of The Share Centre said Miton Asset Management Ltd had untertaken to buy 2.3 million shares of the roughly 10.9 million shares being sold by Oldham. Miton Asset Management is the investment manager for Miton UK MicroCap Trust PLC and is buying the share on behalf of the trust. However, it also directly owns 1.6 million shares, meaning Miton will have an aggregate stake in Share PLC of about 2.7% after the deal completes.
A further 3.7 million of the shares being sold by Oldham, or about 34% of those on offer, will be bought by a trustee of the The Share Centre's employee benefit trust and incentive plans for Share PLC and a third party.
That leaves about 45% of the Oldham shares being sold available to the market. If all the shares are bought, then the Oldham family and those deemed to be in concert with them would hold a 68% state in Share PLC, down from 76%.
Share said the money raised by Oldham is intended to provide sufficient funds to support Share Radio through to profitability. The Share Centre is hoping to gain brand awareness through Share Radio.
"We wish Gavin Oldham every success in building Share Radio and, although that business remains entirely separate from Share PLC, we look forward to the benefits which should flow from a greater awareness of the 'Share' brand," Share PLC Chief Executive Richard Stone said.
"This offer by Gavin Oldham represents a very logical step in the history of the company building its retail investor shareholder base. Having welcomed Miton as a shareholder last year, we welcome their further investment and continued support. We also welcome the increase in liquidity in the company's shares which should result from a reduction in the Oldham family concert party holding," he added.
Share PLC shares were down 7.5% at 35.17 pence early Tuesday, one of the worst-performing stocks on the AIM All-Share index.
By Steve McGrath; [email protected]; @stevemcgrath1
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