Business
Acquisition, ?20m Placing and Notice of GM
Acquisition, ?20m Placing and Notice of GM.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 3543O Palace Capital PLC 06 August 2014 \n \n\n6 August 2014\n \nPalace Capital plc\n( \"Palace Capital\" or \"Company\")\n \nProposed £32 million acquisition of Property Investment Holdings Limited,\n£20 million Placing and Notice of General Meeting\n \nPalace Capital, the AIM listed commercial real estate company, announces that it has entered into a conditional agreement to acquire the entire issued share capital of Property Investment Holdings Limited (\"PIH\") a property investment company based in Weybridge which has a portfolio of 17 properties valued at approximately £32.02 million (the \"Acquisition\"). \n \nThe consideration payable by Palace Capital for the shares of PIH is up to £3.65 million which will be satisfied by the issue of the Consideration Shares at 310p. The Company will also procure the repayment of £27.744 million of the outstanding bank indebtedness owed by PIH to RBS and Lloyds (subject to adjustment to reflect the impact of certain interest rate fluctuations between now and the date of such repayment). After assuming other liabilities of PIH the total amount payable by Palace Capital in connection with the acquisition of PIH is £32.0 million.\n \nTo part finance the Acquisition and to provide additional capital to exploit further opportunities, Palace Capital is undertaking a conditional placing of 6,451,612 Placing Shares at 310p to raise approximately £20.0 million, before expenses (the \"Placing\"). The Placing has been arranged by Arden and Allenby. The Issue Price of 310 pence per Placing Share represents an approximate 6.8 per cent. discount to the closing middle market price of 332.5 pence per Existing Ordinary Share on 5 August 2014, the last business day before the announcement of the Placing.\n \nKey Points\n \n · Second major portfolio acquisition by Palace Capital, following the Sequel portfolio in October 2013\n · PIH portfolio comprises 17 commercial properties located predominately in the South East, valued by\n ...