(Alliance News) - Polypipe Group PLC late Wednesday said it is to launch a share placing to partially fund the plastic piping systems manufacturer's latest acquisition.
Polypipe said it has entered into an agreement to acquire ADEY for a cash consideration of GBP210 million on a debt-free and cash-free basis.
ADEY is a UK-based provider of magnetic filters, chemicals and related products, which protect against magnetite and other performance issues in water-based heating systems, operating in residential end markets.
In order to partly fund the acquisition, Polypipe intends to carry out an underwritten non-pre-emptive placing of up to 18.7 million new ordinary shares, representing about 8% of the company's issued share capital.
Deutsche Bank AG and Numis Securities Ltd are acting as joint bookrunners and the price at which the placing shares are to be placed will be determined at the close of the bookbuilding process, it said.
Polypipe added that its chair, chief executive, chief financial officer and certain non-executive directors intend to participate in the fundraise.
The stock closed down 2.5% at 514.00 pence in London on Wednesday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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