MoneyAM MoneyAM
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Research   Share Price   Awards   Indices   Market Scan   Company Zone   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Stock Screener   Forward Diary   Forex Prices   Director Deals   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Videos   Comparison Tables   Spread Betting   Broker Notes   Shares Magazine 
You are NOT currently logged in

Filter Criteria  
Epic: Keywords: 
From: Time:  (hh:mm) RNS:  MonAM: 
To: Time:  (hh:mm)
Please Note - Streaming News is only available to subscribers to the Active Level and above

COLG agrees reverse takeover of Milton Homes

City of London Group has conditionally agreed the acquisition of Milton Homes and a proposed £11 million equity fundraising.

The company said it proposed to acquire the entire issued share capital of Milton Homes, a provider of equity release products for residential property, for £20.2 million, approximately equal to net tangible assets, from DV4, a fund advised by specialist real estate investment advisory company Delancey.

It said the consideration for the acquisition would comprise £13.2 million in new ordinary shares in COLG and £7 million in cash.

The company said it proposed to raise £11 million through an equity fundraising comprising £7 million through non-pre-emptive Subscriptions and £4 million through a fully underwritten open offer both at a price of 90p per share (equivalent of 4.5p before a proposed 20 for 1 consolidation).

It said that MBIL had agreed to subscribe for £5.8 million in new ordinary shares and to underwrite the open offer in full, in respect of any entitlements not taken up.

It said that in addition, unconnected investors had agreed to subscribe for £1.2 million in new ordinary shares and Peel Hunt may also subscribe, in lieu of part of MBIL's subscription, to ensure that a free float of 10% was achieved following completion of the acquisition.

It said that following completion of the acquisition, the subscriptions and the open offer, DV4 and MBIL (and its concert parties) would hold 51% and up to 39% respectively of the enlarged issued ordinary share capital of COLG (assuming no take-up by other shareholders in the open offer).

Story provided by