Business
Placing and Open Offer
Placing and Open Offer.
About this update from Hill & Smith Plc
[{"type":"text","content":"\n Hill & Smith Hldgs PLC\n12 September 2006\n\n\nHill & Smith Holdings PLC\n\n('Hill & Smith' or 'the Company')\n\nPlacing and Open Offer at 228 pence per share to raise £28.0 million\n\nThe Board of Hill & Smith announces today that the Company is proposing to raise\napproximately £28.0 million by means of a Placing and Open Offer of 12,280,702 \nNew Ordinary Shares at 228 pence per New Ordinary Share. The Company is also \ntoday announcing its interim results for the six months ended 30 June 2006.\n\nBackground to the Fundraising\n\nOver the past three and a half years, the Group has invested £67.6 million,\ncomprising some £34.6 million in capital expenditure and product development,\nand a further £33.0 million in acquiring interests in other businesses,\nprincipally Zinkinvent in 2005 and Counters & Accessories in 2006. These\ninvestments have been funded by internally generated resources and bank\nborrowings.\n\nThe net proceeds of the Placing and Open Offer will strengthen the capital base\nof the Company and, together with the committed borrowing facilities which are \nalready available to the Group, will enable it to take advantage of suitable \nacquisition opportunities and will also provide funding for the organic \nexpansion of the Group's existing businesses.\n\nA major part of the Board's strategy is to continue to broaden the Group's\nproduct offering and geographical spread, and the Directors have identified a\nnumber of potential investment opportunities to provide further growth. These\ninclude both new product development projects, particularly within its core\nInfrastructure Products division, and corporate acquisitions. The Company is\ncurrently evaluating a number of possible acquisition opportunities.\n\nDetails of the Placing and Open Offer\n\nHill & Smith is proposing to raise approximately £28.0 million before expenses\n(£26.8 million after expenses) pursuant to the Placing and Open Offer by the\nissue of 12,280,702 New Ordinary Shares at an Issue Price of 228 pence per New\nOrdinary Share. The Issue Price represents a discount of 5.6 per cent to the\nClosing Price for an Existing Ordinary Share of 241.5 pence on 11 September \n2006, the last business day prior to the announcement of the Placing and Open \nOffer.\n\nArden Partners has placed firm with institutional and ot...