15th Jul 2021 18:20
(Alliance News) - SigmaRoc PLC on Thursday said it has agreed to acquire Finnish limestone developer Nordkalk Oy AB in a reverse takeover for EUR470 million.
The deal is expected to create an enlarged company, in the form of a quarried materials group in Northern Europe, operating across six platforms, with 37 quarries and 76 operations across 13 countries, and supplying a diverse range of products from aggregates to specialist products.
The acquisition will be funded by a drawdown of EUR150 million under a new GBP305 million banking facility, an issue of EUR50 million in SigmaRoc shares to Nordkalk's owner Rettig Group Oy AB, and the raising of GBP260 million through a placing.
Under the placing, SigmaRoc will issue up to 305.9 million shares at a price of 85 pence per share. Peel Hunt, Liberum Capital and Numis Securities are acting as joint bookrunners for the placing.
SigmaRoc is also looking to raise up to GBP6.5 million, by offering up to 7.7 million shares through a retail offer at the same price per share.
The deal is conditional on gaining shareholder approval at a general meeting scheduled for August 2, as well as approval from the Polish Competition Office.
"The acquisition of Nordkalk, Northern Europe's leading limestone products company, is a great stepping stone in the evolution of our group, expanding our footprint across Northern European markets. We have agreed to purchase a high-quality business at what we believe is the right point in the cycle and at an attractive valuation. The Acquisition meets all of our stringent investment criteria as a self-contained and asset-backed business, which will bring the group significant earnings growth and cash generation," said Chief Executive Officer Max Vermoken.
Shares in SigmaRoc closed flat at 89.50 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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