2nd May 2018 11:11
LONDON (Alliance News) - Housebuilder Springfield Properties PLC on Wednesday announced a fundraising to help go towards the acquisition of DHomes 2014 Holdings Ltd.
The company intends to raise GBP15.0 million through the placing of 12.5 million shares at a price of 120.00 pence each. The price represents about 3.2% discount to the closing share price on Tuesday. After the admission, the company will have 83.8 million shares overall.
Shares in Springfield Properties were trading 4.8% higher at 130.00p per share on Wednesday.
The company said it will use funds to partially finance the GBP17.6 million cash consideration paid in respect of the acquisition, with the total amount for DHomes potentially GBP20.1 million.
Springfield Properties will pay GBP15.5 million in cash from existing facilities and GBP2.1 million raised in the placing will cover the remaining amount. It did not specify what the remaining cash raised in the placing would be used for.
In addition to that, the company said it may pay GBP2.5 million in cash, contingent on it receiving zoning on DHomes' site at Johnstone, Scotland.
Upon completion of the acquisition, the company assumed around GBP6.7 million debt.
"This was a rare opportunity to acquire a profitable company that builds great homes," said Executive Chairman Sandy Adam.
"Overall, this acquisition will enable Springfield to grow and deliver housing more widely across Scotland."
Related Shares:
Springfield Pr.