Macfarlane Gorup Plc Acquires Network Packaging Limited
The Company is pleased to announce it has conditionally raised £3 million (before expenses) by way of a placing of 8,000,000 Placing Shares at 37.5 pence per Placing Share with institutional investors. In addition, it is also announced that the Company had completed the acquisition of the entire issued share capital of Network Packaging for a maximum consideration of approximately £7.5m. The acquisition is not conditional on the Placing.
As the allotment and issue of the Placing Shares will exceed the existing authorities which the Directors have to allot new Ordinary Shares for cash on a non pre-emptive basis, a general meeting of Shareholders is being convened to seek approval to grant new authorities to enable the Directors tocomplete the Placing. If Shareholder approval of either of the Resolutions is not given at the General Meeting, the Placing as currently envisaged will not proceed.
The Placing Shares to be issued pursuant to the Placing are to be admitted to the Official List and admitted to trading on the Main Market of the London Stock Exchange, which is expected to take place at 8.00 a.m. on 2 October 2014.
Macfarlane's Chief Executive, Peter Atkinson commented:
"The Board is very pleased with the high level of support being shown for its strategy by both new and existing institutional shareholders. The successful acquisition of Lane Packaging earlier this year demonstrates our ability to identify, complete and integrate acquisitions effectively.
"Network Packaging is a successful company and today's acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Network Packaging management team will remain with the business. They will add to our management capability and their experience in the third-party logistics sector and internet retail will complement the existing Macfarlane strengths in these market sectors."