Business
Proposed Placing
Proposed Placing.
About this update from Marston's Plc
[{"type":"text","content":"\n \nRNS Number : 4797F Marston's PLC 18 May 2017 \n\n \n18 May 2017\nThis announcement (including the appendix) and the information contained herein is restricted and not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Japan, South Africa or any other jurisdiction in which such release, publication or distribution would be unlawful. Please see the important notice at the end of this announcement.\nThis announcement contains inside information.\nMARSTON'S PLC ANNOUNCES A PROPOSED PLACING OF APPROXIMATELY 9.9% ISSUED SHARE CAPITAL\nMarston's PLC (\"Marston's\" or the \"Company\") today announces its intention to conduct a non-pre-emptive cash placing of approximately 57.6 million new ordinary shares in the Company to institutional investors (the \"Placing\"), which represents approximately 9.9% of the Company's issued share capital (excluding treasury shares). J.P. Morgan Securities PLC, which conducts its UK investment banking activities as J.P. Morgan Cazenove (\"J.P. Morgan Cazenove\"), and Numis Securities Limited (\"Numis\") are acting as joint bookrunners (the \"Bookrunners\").\nThe Company has also announced today that it has agreed to acquire the Charles Wells Brewing and Beer Business from the Charles Wells Group for a cash consideration of £55 million, plus working capital adjustments, representing 5.5x EBITDA post synergies. Based in Bedford, Charles Wells Brewing and Beer Business is an established high quality brewing business with a portfolio of more than 30 beers including leading brands such as Bombardier, Young's and McEwan's. In addition, the business has UK distribution rights for the Estrella Damm lager brand and other beers under license including Kirin and Erdinger (see separate announcement). \nThe Company also announced today the agreement to acquire seven pubs in strong locations to enhance its Destination and Premium estate for a consideration of £13m with a refurbishment investment of £3m, representing 7.8x post investment EBITDA. \nBoth of these acquisitions (the \"Acquisitions\") are expected to complete in June 2017.\nThe Acquisitions are expected to deliver a combined ROIC in excess of 15% in the first full year and to be EPS neutral in the first full year and accretive thereafter. Pro forma Net debt:E...