14th Dec 2007 11:34
Delling Group PLC14 December 2007 For Immediate Release 14 December 2007 DELLING GROUP PLC (DLG.L) The AIM-listed marketing support services group Re: £2.1 million Placing Delling Group PLC ("Delling" or "the Company"), the AIM-listed integratedmarketing support services company, announces that it has raised £2.1 millionbefore expenses by way of a placing of 34,652,900 new Ordinary Shares ("PlacingShares") at a price of 6 pence per Ordinary Share (the "Placing"). Bjart Dysthe, who is already a substantial shareholder in the Company, willsubscribe 16,666,667 Placing Shares in the Placing. Following completion of thePlacing, Mr Dysthe will hold 53,190,444 shares in the Company representing 26.3per cent. of the issued voting share capital. Additionally the pension fund of Tine, the Scandinavian dairy products group,will subscribe 5,583,333 Placing Shares in the Placing. Following completion ofthe Placing, the pension fund will hold 18,833,333 shares in the Company,representing 9.3 per cent. of the issued voting share capital. These shares areheld in the name of MP Pensjon. The Company is also in advanced discussions regarding the issuance of £750,000of loan notes. The negotiations are expected to be concluded shortly at whichpoint a further announcement will be made. The net proceeds of the Placing will be used to strengthen the balance sheet andto improve the Delling Group's working capital position, which should allow itto obtain better terms of trade with its suppliers. The Directors believe thatimproving the terms of trade, coupled with the bulk purchasing power that theGroup enjoys by virtue of its size, together with reducing supplier debtinterest, will contribute positively to the Group's profit improvement plan thathas been implemented throughout 2007. Application has been made for the admission of the Placing Shares to trading onAIM. The Placing Shares will rank pari passu in all respects with the existingOrdinary Shares in the Company and trading of the Placing Shares is expected tocommence on 20th December 2007. The total number of Ordinary Shares in issue following the Placing will be202,104,606. Aksel Bratvedt, Executive Chairman of Delling Group commented: "I am pleased that the Group has been able to raise finance in what is currentlya very challenging market, which indicates the strength of the Group and ourbusiness concept. The funds raised will strengthen the balance sheet and should yield tangibleresults in terms of reducing the supplier interest charge and obtaining morefavourable pricing and terms of trade from our suppliers, and I look forward toseeing those benefits in 2008." Contact: Delling Group PlcAksel Bratvedt, Executive Chairman Tel: 0207 484 5663James Robinson, CFO Tel: 0207 484 5664Geir Lolleng, CEO Tel: +46765276024 www.dellinggroup.com Adventis Financial PRTarquin Edwards Tel: 020 7034 4758/07879 458 364 Nabarro Wells & Co Limited - Nominated AdvisorHugh Oram Tel: 020 7710 7400 City Capital Corporation Limited - BrokerDavid Kent Tel: 020 7583 5800 Notes to Editors Delling Group is a leading supplier of marketing support services for marketingand communication departments throughout The Nordic countries. Delling manages all fields of graphic support in many different forms andformats including trade fairs, exhibitions and interactive digital solutions forthe web, mobile telephone marketing solutions, motion media for flat screens,plasma or LCD. It also supplies IT solutions which support and increase the efficiency of bothmarketing and information departments. However, its major strength is that theGroup can deliver complete turnkey solutions, tailor-made for its customers'every need. Delling also offers outsourcing solutions that can substantiallysave costs and improve efficiency. The Group's major activities are today concentrated in the Norwegian and Swedishmarkets, however, it is quickly expanding into other Nordic areas, as well ashaving customers and production facilities in Eastern Europe. It also has wellrespected suppliers as far a field as China and Thailand. Delling Group currently has 130 employees. It is rapidly developing itsorganisation by focusing on supplying its customers with the quality theydemand, delivered on time at the right price. Central to its philosophy lies thefact that its customers will obtain greater effects and efficiency for everypound they invest in marketing and information. The Group is growing strongly,both through development of existing clients and the establishment of many newrelationships, together with acquiring companies that enhance and furtherdevelop its business concept. Delling's goal is within the course of the next two years, through bothsatisfied customers and recommendations, to be the largest company in the fieldof marketing support services within the Nordic countries, and a significantplayer within Eastern Europe. In October 2004 it was the first Scandinavianbusiness to be listed on the Alternative Investment Market, the London StockExchange's international market for smaller growing companies. This has givenDelling the access it needs to capital funds needed to maintain and strengthenthe further development of the Group. ENDS This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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