15th Jun 2015 13:21
LONDON (Alliance News) - Teathers Financial PLC Monday said it has invested GBP50,000 in fellow-listed Octagonal PLC, which is currently in the process of potentially acquiring another firm.
Last Friday, financial-services investment company Octagonal said it was set to acquire the remaining shares it does not already own in Global Investment Strategy, which provides global settlement and safe custody services to smaller institutional funds, family wealth offices and high net worth investors. Octagonal already holds a 9.97% stake in GIS.
The deal requires shareholder approval because it has been deemed a reverse takeover on account of the significant change in the AIM-listed company's business, and Octagonal raised GBP1.7 million before expenses in a subscription to fund the deal. It is paying GBP1.5 million cash for GIS and issuing 336.1 million Octagonal shares at 2.0 pence each, worth GBP6.7 million.
On Monday, Teathers said it has purchased 2.5 million Octagonal shares under that subscription, representing around 0.45% of Octagonal's enlarged issued share capital.
Should the acquisition of GIS by Octagonal be completed, the enlarged group will become a financial services company, which provides settlement and safe custody services to smaller institutional funds, family wealth offices and high net worth investors along with other ancillary services.
Teathers Finance Director, Nilesh Kagatia, will join Octagonal's board once the shares have been admitted to trading on AIM.
Teathers Financial shares were down 2.1% to 3.18 pence per share on Monday afternoon, whilst Octagonal shares fell 0.4% to 0.224 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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