LONDON (Alliance News) - Belvoir Lettings PLC on Tuesday said it has raised GBP2.5 million in a share placing, which will partly fund its conditional agreement to buy independent UK lettings franchise Northwood GB Ltd for GBP22.0 million.
Belvoir said, on completion of the deal, it would be the largest property franchise group in the UK.
The GBP22.0 million consideration comprises of an initial consideration of up to GBP11.5 million and the remaining balance as a two year earn out, the company said. Belvoir had said earlier in the day that it would undertake a share placing to raise funds to go towards the acquisition.
In the placing, which took place on Tuesday morning, 2.2 million shares were placed at a price of 112 pence per share, raising proceeds of GBP2.5 million. The placing shares represent 6.6% of Belvoir's enlarged share capital, the company said.
Shares in Belvoir were up 3.4% at 121.00p on Tuesday morning.
Cantor Fitzgerald Europe acted as nominated adviser, sole bookrunner and broker for the placing.
Belvoir said it continues to trade positively, with managed services fees up 36% in the first quarter compared to the same period a year earlier. Trading is currently in line with Belvoir's expectations, the company said.
"This acquisition, which is in line with our multi-brand strategy to grow both organically and by acquisitions, will substantially increase the group's presence throughout the UK. We look forward to developing Northwood further as part of the Belvoir as we continue to grow and also look for further acquisition opportunities," Goddard said.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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