(Alliance News) - Midwich Group PLC on Thursday said it has raised about GBP51 million via a placing and retail offer, to help fund its acquisition of SF Marketing Inc.
Midwich is a specialist audiovisual distributor to the trade market with operations across the UK and Ireland, Continental Europe, Asia-Pacific and North America.
On Wednesday, Midwich announced plans to raise GBP50 million via a placing of shares priced at 425 pence each, as well as a GBP2.0 million retail offer. The placing price represents a 5.6% discount to the shares' closing price of 450p on Wednesday.
Shares in Midwich closed 2.2% lower at 440.00p each in London on Thursday.
It had also announced the CAD44.3 million, around GBP26.7 million, acquisition of SF Marketing Inc, a specialist value-add audio video distributor in Canada.
Proceeds will be used to pay down the debt which will fund the initial acquisition consideration of SFM, in addition to securing funding which will enable the execution of further acquisitions.
On Thursday, Midwich said it had raised GBP50 million, through a placing on 11.8 million shares. It also said it has completed a GBP1.3 million retail offer of 294,233 shares.
In total, the placing and retail offer shares represent about 13% of the existing share capital of the company.
By Sophie Rose, Alliance News reporter
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Midwich Group (MIDW)