LONDON (Alliance News) - Belvoir Lettings PLC on Wednesday said it has issued 818,754 shares to the vendors of East Midlands-based franchise property sales and lettings company Newton Fallowell.
Belvoir acquired Newton Fallowell in July 2015, and in April reported that Newton Fallowell had exceeded its 2017 earnings before interest, tax, depreciation and amortisation target of GBP1.0 million.
As such, the earn out due to the Newton Fallowell vendors of GBP933,380 in 2017, will now be settled in shares in 2016, Belvoir Lettings said.
Belvoir said it has issued and allotted 818,754 shares based on the average mid-market share price of 114.00 pence for the 28 days prior to May 5, in relation to the settlement of the 2017 deferred consideration.
Shares in Belvoir were untraded on Wednesday, having last traded at 122.65p.
These shares issued to the vendors will be subject to a 12 month lock-in, Belvoir added.
"Newton Fallowell was the first acquisition in our multi-brand franchising strategy which has proved to be very successful with strong trading from the Newton Fallowell network exceeding expectations. The Newton Fallowell management team has demonstrated confidence in the wider Belvoir Group by opting to take their 2017 earn-out in Belvoir shares which they will be required to hold for at least 12 months," Chief Executive Mike Goddard said.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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