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(Sharecast News) - DP Poland has entered into a conditional share purchase agreement to acquire Polish pizza restaurant group Dominium, it announced on Friday.
The AIM-traded firm, which holds the master Domino's Pizza franchise in Poland, said consideration would be satisfied by the issue of 283,766,661 shares at a price of 8p per share, credited as fully paid, and an unsecured loan note of €1.3m to Malaccan Holdings.
In addition, outstanding debt of around €6.2m, currently due from Dominium to Malaccan Holdings under existing shareholder loans, would be converted into a further unsecured loan note of €6.2m that will be issued to Malaccan on the same terms and in substitution for that outstanding debt.
In total, €7.5m in loan notes would be issued to Malaccan Holdings on completion of the acquisition, with the notes non-convertible.
The board noted that the acquisition would constitute a reverse takeover under the AIM rules and as such remained conditional on shareholder approval.
"The company is proposing to raise £3.5m through a fundraising, which will comprise a placing and subscription of 43,750,000 new shares in aggregate at the issue price of 8p per share," the board said in its statement.
"The fundraising will also include a placing of 21,828,204 sale shares which forms part of the consideration shares issued to Malaccan Holdings, and which will also be placed at the same issue price.
"The fundraising is conditional ... upon completion of the acquisition and admission."
5 Oct 2016 06:39