Breedon Aggregates, the UK’s largest independent aggregates business, has announced plans to raise approximately £15 million (approximately €18 million) to fund future acquisitions. It has unveiled a conditional placing of 83,333,335 ordinary shares of no par value (the Placing Shares) with new and existing institutional investors and directors, to raise the money before expenses (the Placing).
Breedon Aggregates, the UK’s largest independent aggregates business, has announced plans to raise approximately £15 million (approximately €18 million) to fund future acquisitions.
It has unveiled a conditional placing of 83,333,335 ordinary shares of no par value (the Placing Shares) with new and existing institutional investors and directors, to raise the money before expenses (the Placing).
The Placing will provide Breedon Aggregates with additional cash resources to make further acquisitions and if appropriate reduce the indebtedness of the company and its subsidiaries.
The Placing is conditional, inter alia, upon the passing by the company’s shareholders of certain of the resolutions proposed at the company’s annual meeting on 20 April 2012, to give the directors power to allot ordinary shares (including the placing Shares) on a non-pre-emptive basis.
Marwyn Value Investors has signed an irrevocable undertaking to vote in favour of the resolutions at the meeting in respect of its holding of 146,223,698 ordinary shares representing 26.1% of the existing issued share capital.
Breedon Aggregates’ stated strategy is to grow via consolidation of the heavyside building materials sector, and since the reverse takeover of Breedon Holdings Limited in 2010, the company has made two bolt-on acquisitions (C&G Concrete
and Nottingham Readymix) for a total consideration of £11.7 million (€14 million).
The company continues to seek opportunities to acquire similar businesses and the funds raised from the Placing may be used to provide additional cash resources for this purpose.
The company is currently in discussion with a number of potential vendors.
The Placing Shares once issued will represent approximately 12.9% of the company’s issued ordinary share capital immediately following admission (assuming no other ordinary shares are issued prior to such date).
