Business
Potential Acquisition
Potential Acquisition.
About this update from Wynnstay Group Plc
[{"type":"text","content":"\n \nRNS Number : 4128K Wynnstay Group PLC 30 July 2013 \n \n\n \n \n\nAIM:WYN\n \nWynnstay Group plc\n(\"Wynnstay\" or the \"Group\" or the \"Company\")\n \nPotential Acquisition\n \nWynnstay, the agricultural supplies and specialist retail group, is pleased to announce that it has entered into a conditional agreement (the \"Acquisition Agreement\") with Carmarthen and Pumsaint Farmers Limited, which supplies agricultural inputs from seven stores in South West Wales (the \"Society\"), to purchase all of the Society's business and assets except for its freehold properties (the \"Target Assets\"). The initial consideration for the Target Assets will be £4.6 million to be paid in cash on completion, with a further two cash payments to be made one month and two months after completion, dependent on the collection by the Company of certain accounts receivables, which are currently estimated to be approximately £2.6m. The total estimated consideration of £7.2 million reflects the anticipated book value of the Target Assets, which will be subject to final confirmation, and £1 million for the goodwill of the business.\nIn order for the Society to sell the Target Assets, the Society is required to convert from its current status as an industrial & provident society into a private limited company (the \"Newco\") (the \"Conversion\"). The acquisition of the Target Assets (the \"Acquisition\") is therefore conditional on, inter alia, the Conversion being approved by the ordinary members of the Society. Should the members of the Society approve the Conversion, Wynnstay expects that the Acquisition will complete at the end of September. \n \nShould the Acquisition reach completion, Wynnstay will assess the cash resources available to it to fund the consideration, and the directors of the Company, may, if it is deemed appropriate in the circumstances and in the best interests of the Company, decide to undertake an equity fundraising to fund all or part of the required consideration.\n \nTarget Assets\n \nThe Society has traded since 1903 and supplies inputs to the agricultural industry. It is based in South West Wales, where it trades from seven stores at Cardigan, Carmarthen, Crosshands, Haverfordwest, Llandeilo, Llandovery and St Clears. For the year ended 30 September 2012, the ...