(Alliance News) - Big Yellow Group PLC said on Thursday it successfully raised GBP100 million from a placing of new shares with existing shareholders and new institutional investors, with the funds set to go to acquisitions.
The Surrey, England-based self-storage company placed 7.8 million shares, priced at 1,290 pence each. The placing price represented a 0.9% discount to Wednesday's closing share price of 1,302p.
Big Yellow shares were down 0.2% at 1,300.00 pence each in London on Thursday morning.
On Wednesday, Big Yellow said it intends to use the net proceeds to fund acquisitions of GBP145 million, including 80% remaining stake in Armadillo, as well as 66 Hammersmith Road, West Kensington, in London.
Executive Chair Nicholas Vetch said: "The placing has been successfully completed, and we are very grateful to our shareholders for their support. This equity raise allows us to fund two important strategic acquisitions, which along with our existing development pipeline, have the potential to generate in excess of GBP40 million of net operating income over the short to medium term, and in so doing create significant value for our shareholders."
The FTSE 250-listed company said it expects the placing to be admitted to trade on London Stock Exchange's main market next Monday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Big Yellow (BYG)