21st Feb 2020 15:26
(Alliance News) - Redde PLC and Northgate PLC have completed their all share merger, it was announced on Friday, following which Northgate was immediately renamed as Redde Northgate PLC.
Earlier on Friday, London's junior AIM market said that Redde's shares had been temporarily suspended from trading pending an announcement.
The merger agreement was announced in November 2019 and was implemented via a court approved scheme or arrangement. This scheme has become effective immediately and, in accordance with the shareholder resolution passed on January 15, Northgate was renamed.
As previously disclosed, Martin Ward was appointed at Redde Northgate's chief executive while John Davies, Mark McCafferty and Stephen Oakley were appointed as non-executive directors.
Under the terms of the merger, each Redde shareholder will receive 0.3669 of a new Northgate share for every Redde share held. After completion, Northgate shareholders will control 54% of the combined company and Redde investors the remainder.
The 112.9 million new Northgate shares issued in connection with the deal are to be admitted to trading on the London Stock Exchange's Main Market on Monday next week, giving Redde Northgate a total of 246.1 million ordinary shares in issue plus 1.0 million preference shares.
Shares in Northgate were down 1.8% at 280.40 pence in London on Friday afternoon.
By Anna Farley; [email protected] and Ife Taiwo; [email protected]
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