Next Fifteen Communications Group plc Acquisition of minority shareholdings in Morar
Next Fifteen Communications Group plc, the digital communications group, announces that on 25 February 2016 it acquired the remaining 25% minority interests in Morar Consulting Limited, its research and advisory agency, and settled in full the remaining obligation for the original purchase of 75% issued share capital made on 3 December 2014 (the “Outstanding Deferred Morar Consideration”). Morar’s remaining obligation in respect of the acquisition of its subsidiary made on 23 April 2015 (the “Outstanding Deferred Subsidiary Consideration”) was also settled in full.
The aggregate consideration for the Minority Interest, the Outstanding Deferred Morar Consideration and the Outstanding Deferred Subsidiary Consideration is £3.55m to be paid in two tranches. The first tranche was paid on 25 February 2016 for £1.86m comprising £1.59m in cash with the balance of £0.27m being satisfied by the issue of 118,162 new Ordinary shares of 2.5p each in the Company (“Ordinary Shares”) to the sellers. The second tranche of £1.69m is payable on 28 February 2017 and is conditional on the continued employment of the sellers.
The acquisitions are expected to be immediately earnings enhancing for the Company.
The Ordinary Shares were issued and allotted to the sellers on 25 February 2016 and will rank pari passu with the Company’s existing ordinary shares. Application has been made to the London Stock Exchange for the new Ordinary Shares to be admitted to AIM and it is expected that admission will take place on 3 March 2016. Following the issue and allotment of the new Ordinary Shares as described above, the Company will have 70,652,699 Ordinary Shares in issue. No shares are held in treasury.