12th Sep 2013 09:35
LONDON (Alliance News) - Agricultural-products firm Wynnstay Group PLC Thursday said it expects to complete the acquisition of farming-equipment firm Carmarthen and Pumsaint Farmers Limited by 30 September, and will use a conditional share placing to fund it.
Wynnstay said it has assessed the cash resources available to fund the consideration for the acquisition and has concluded that it is in the best interests of the company to undertake an equity fundraising.
As a result, the firm said it plans to raise GBP9.0 million, before expenses through a conditional placing of new ordinary shares of 25 pence each in the capital of the company with both new and existing investors.
The net proceeds of the placing will be used partly to fund the consideration payable for the acquisition, with the balance used to support it's long-term strategy to act as a consolidator in the agricultural sector as well as for working capital.
Wynnstay shares were trading at 555.00 pence Thursday morning, down 6.00 pence, or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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