20th Jun 2006 07:01
Delling Group PLC20 June 2006 For Release 7:00 am 20 June 2006 DELLING GROUP PLC The AIM-listed marketing services group £4.7 million Placing Delling Group PLC ("Delling" or "the Company"), the AIM-listed integratedmarketing support services company, announces that it has raised £4.7 millionbefore expenses by way of a placing of 59,473,436 new Ordinary Shares ("PlacingShares") at a price of 8 pence per Ordinary Share ("Placing Price"). Theplacing of 49,254,686 of the Placing Shares is conditional on the passing ofresolutions authorising the allotment and issue of such shares at the annualgeneral meeting of the Company to be held on 12 July 2006. Seymour Pierce has, as agent for Delling (and conditional on satisfaction of theabove condition in relation to 49,254,686 Placing Shares), procured subscribersfor 42,182,336 Placing Shares at the Placing Price and those Placing Shares arebeing placed by Seymour Pierce with institutions and other investors. As a demonstration of his commitment to the Company, Aksel Bratvedt and DavidKrucik will subscribe for 1,250,000 Placing Shares and 187,500 Placing Sharesrespectively in the Placing and these shares will form part of the SecondTranche (as defined below). Following completion of the Placing (and assumingthe resolutions are passed at the AGM), Mr Bratvedt and Mr Krucik will hold6,320,268 and 337,246 shares in the Company respectively representing 4.73% and0.25% respectively of the total issued share capital. Bjart Dysthe, who is already a substantial shareholder in the Company, willsubscribe for 18,148,425 Placing Shares in the Placing, 6,898,425 of which willrepresent satisfaction of £552,000 worth of loans which had been previously madeby him to Delling. These shares will form part of the Second Tranche. Followingcompletion of the Placing (and assuming the resolutions are passed at the AGM),Mr Dysthe will hold 36,523,917 shares in the Company representing 28.49% of theissued voting share capital. The Directors consider, having consulted withSeymour Pierce (the Company's nominated adviser), that the terms of thetransaction with Mr Dysthe are fair and reasonable insofar as the shareholdersof the Company are concerned. In total, existing shareholders are subscribing £1.4 million for 17,291,100Placing Shares in the Placing in satisfaction of existing shareholder loans,which will generate a balance sheet with more than £5m in equity. These shareswill form part of the Second Tranche. Admission of the Placing Shares to trading on AIM is expected to take place asfollows: • in respect of 10,218,750 Placing Shares (the "First Tranche") on or about Monday 26 June 2006 (the "First Admission") and application will be made for dealings in the First Tranche to commence on or about that date; and • conditional on the passing of the necessary resolutions at the AGM, in respect of the balance of the Placing Shares (the "Second Tranche") on or about Monday 17 July 2006 ("Second Admission") and application will be made for dealings in the Second Tranche expected to commence on or about that date. The Board considers this Placing an important step in the evolution of DellingGroup, whose strategy includes taking advantage of consolidation within thefragmented industry sector in Scandinavia in which it operates. The net proceedsof the Placing will be used to strengthen the balance sheet which should in turnenable the Company to obtain further bank financing to fund, inter alia, thegroup's acquisition programme. Aksel Bratvedt, Executive Chairman of Delling Group commented: "Since listing in October 2004, five companies and have been acquired at anaverage p/e of 4 and successfully integrated into the Delling concept. Thesecompanies, together with the existing business in Sweden have generatedcontracts with a turnover of more that £5million per year. This fundraising has positioned Delling to take advantage of furtheropportunities and also strengthened its financial position. Although at adiscount to the current share price we strongly believe that the funds receivedwill generate more shareholder value than maintaining the status quo." ENDS For further information please contact: Contact:Delling Group PlcAksel Bratvedt, Executive Chairman Tel: 0207 484 5663Geir Lolleng, Chief Executive Officer Tel: +46 7652 76024James Robinson, CFO Tel: 0207 484 5664 Tarquin Edwards/Peter Binns Tel: 020 7034 4758 / 4760 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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