Business
Placing and Acquisition
Placing and Acquisition.
About this update from Restore Plc
[{"type":"text","content":"\n Mavinwood PLC\n23 June 2006\n\n\n\n\n Mavinwood plc ('Mavinwood' or the 'Company')\n\n Proposed fundraising and conditional acquisition of\n Independent Inspections Holdings Limited\n\nMavinwood plc (AIM: MVW), the support services company, announces that it is\nproposing to raise £12 million through the placing (the 'Placing') of\n100,000,000 new ordinary shares at 12 pence per share. These shares have been\nconditionally placed with Geraldton Services Inc. subject to a proposed\nsub-placing of 40,701,497 of those shares by Seymour Pierce Limited on behalf of\nthe Company with institutional and other investors. The Placing is subject to\nshareholder approval at an EGM, which has been convened for Monday 17 July 2006.\n\nThe majority of the net proceeds of the Placing will be used to satisfy the\ninitial consideration of £10 million for the acquisition of Independent\nInspections Holdings Limited ('Independent Inspections').\n\nThe Company has conditionally agreed to purchase the entire issued share capital\nof Independent Inspections for an initial consideration of £10 million and a\ncontingent consideration up to a maximum of £4 million dependent on the\nperformance of the Independent Inspections group (the 'Independent Group').\nFollowing Completion, the existing management of the Independent Group will\ncontinue to run the business.\n\nThe Independent Group is a UK based carpet and upholstery service business\nfounded in 1989, which provides a complete and seamless validation/restoration\nand replacement service to the insurance industry. Its principal activity is the\nprovision of an independent inspection and validation service of an insurance\npolicyholder's claim in respect of damaged carpets, laminates and other\nflooring. It also provides a similar service to carpet manufacturers for claims\nmade by householders in respect of their newly fitted carpets.\n\nThe Independent Group's insurance customers include the RBS Insurance group of\ncompanies, AXA, Norwich Union and Zurich. The Directors of Mavinwood estimate\nthat Independent's share of the carpet insurance claims market is in excess of\n25 per cent.\n\nIn the year ended 31 December 2005, Independent Inspections made a profit before\ntax of £366,000 on turnover of £6,486,000. At 31 December 2005, Independent\nInspections has net assets of £1,971,000. The D...