Business
Placing
Placing.
About this update from Northern Bear Plc
[{"type":"text","content":"\n Northern Bear Plc\n02 August 2007\n\n\n\n Northern Bear Plc\n\n ('Northern Bear' or the 'Company')\n\n Proposed Placing of 2,415,250 new ordinary shares of 1p each at 145 pence per\n share to raise approximately £3.5 million gross (the 'Placing')\n\nIntroduction\n\nThe board of the Company ('Board') is pleased to announce that Northern Bear,\nthe integrated North of England based building materials and services supplier,\nproposes to raise approximately £3.5 million (before expenses) by way of a\nplacing of 2,415,250 new ordinary shares of 1p each in the Company ('Placing\nShares') at a price of 145p per share (the 'Placing Price').\n\nReasons for the Placing\n\nSince its admission to AIM on 19 December 2006, Northern Bear has completed the\nacquisitions of MGM Limited, Chirmarn Holdings Limited and Hastie Limited and\nthe Board remains encouraged by the increasing number of opportunities for\npotential acquisitions being presented to it. Accordingly, the net proceeds of\nthe Placing, which are expected to amount to approximately £3.15 million, will\nbe applied to progressing the Company's acquisition policy, being the\nacquisition of mature, North East based owner-managed businesses in the\nbuildings services and materials sector which demonstrate consistent\nprofitability and positive operating cash flow.\n\nIn line with its stated strategy, the Company has negotiated non-binding heads\nof agreement in connection with three separate potential acquisitions.\nCompletion of each is subject to, inter alia, a satisfactory due diligence\nreview (which is yet to be undertaken) and to an appropriate sale and purchase\nagreement being negotiated and being acceptable to all relevant parties.\nTherefore, there can be no certainty that any or all of these potential\nacquisitions will proceed to completion.\n\nCurrent trading and dividend policy\n\nAs indicated at the time of the Company's preliminary announcement of results on\n14 June 2007, the current financial year has got off to a very satisfactory\nstart and the Board looks forward to the future with confidence.\n\nThe Board remains committed to implementing a progressive dividend policy and,\nsubject to no unforeseen circumstances arising, intends to pay an initial\ndividend no later than in respect of the 6 month period ending 30 September\n2008.\n\nThe Placing\n\nDawnay, Day...