Business
Proposed placing of new ordinary shares
Proposed placing of new ordinary shares.
About this update from Big Yellow Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8989C\n Big Yellow Group PLC\n 23 June 2021\n \n \n \n THIS ANNOUNCEMENT, INCLUDING THE APPENDIX AND THE INFORMATION CONTAINED HEREIN, IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.\n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.\n \n 23 June 2021\n \n Big Yellow Group PLC (\"Big Yellow\" or the \"Company\" and, together with its subsidiaries, the \"Group\")\n \n \n PROPOSED Placing of new ordinary Shares\n \n \n Big Yellow announces today its intention to raise gross proceeds of approximately £100 million by way of a placing of new ordinary shares (the \"Placing\") with both existing shareholders and new institutional investors.\n \n Highlights\n \n \n \n \n § Intention to raise gross proceeds of approximately £100 million\n \n \n § The Company intends to use the net proceeds to fund acquisitions of £145 million (including underlying debt):\n \n \n o 80% remaining stake in Armadillo, Big Yellow's existing regional brand of 25 stores, for c. £119 million, including underlying debt of c. £51.4 million for a Year One net operating income (\"NOI\") yield of 7.7% (based on a projected NOI of £10.9 million), assuming 2.75% purchaser's costs\n \n o 66 Hammersmith Road, West Kensington, London for c. £26 million, the most strategic site in the Group's history\n \n o The combined transactions will be earnings accretive day one\n \n \n § The Armadillo portfolio is Big Yellow's existing regional brand in smaller towns and cities and Big Yellow intends to acquire, via a subsidiary, the stake it does not already own from its JV partners. Notable aspects of this transaction include:\n \n \n o Armadillo stores will continue to operate alongside Big Yellow, currently fully integrated onto the digital and operating platform\n \n o Acquisition opportunities to grow...