Last checked at 12 Sep 2008 12:01
BEGBIES TRAYNOR GROUP PLC
12 September 2008
Placing of 7,878,788 new Ordinary Shares and 1,212,121 existing Ordinary Shares of 5p each at a placing price of 165p per Ordinary Share by Shore Capital (the "Placing")
Begbies Traynor Group plc ("Begbies Traynor" or the "Group"), the specialist professional services organisation, is pleased to announce that it has today, through Shore Capital, arranged the placing of 7,878,788 new Ordinary Shares of 5p each, raising ‚£13.0 million before expenses for the Group.
In addition, Andrew Dick, the Group's Chief Operating Officer, has agreed, through Shore Capital, to place 1,212,121 existing Ordinary Shares of 5p each at the same price, which will not only help to satisfy demand, but will improve further the level of free float and liquidity in the shares of the Group.
The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares save that they will not rank for the final dividend of 1.5p per Ordinary Share in respect of the year ended 30 April 2008, payable on 31 October 2008. Admission to trading on AIM of the new Ordinary Shares is expected to take place on Thursday 18 September 2008.
The proceeds from the Placing will be used to provide working capital for the Group, largely in relation to the significant anticipated organic growth of Begbies Traynor's core and counter-cyclical business insolvency practice resulting from the slowdown in the economy.
Following the Placing, the issued share capital of the Group will increase by 9.7% to 89,115,284 Ordinary Shares of 5 pence each. In accordance with the Disclosure and Transparency Rules, Begbies Traynor confirms that its issued share capital as at the date of this announcement comprises 89,115,284 Ordinary Shares of 5p each. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of Begbies Traynor under the Disclosure and Transparency Rules.
Andrew Dick's shareholding will reduce from 9.43% to 7.24% of the total issued share capital and total voting rights.
As a result of the Placing, a number of new institutional investors will become shareholders.
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, said:
"We are delighted with the level of demand for Begbies Traynor's shares from a variety of blue chip institutions, both existing and new investors, and very much welcome our new shareholders. These new funds, together with existing facilities, will provide adequate resources for Begbies Traynor to capitalise fully upon an anticipated sustained period of improved new work flow in our core business insolvency practice."
Enquiries please contact:
Ric Traynor - Executive Chairman Begbies Traynor Group PLC
0161 837 1700
John Gittins - Finance Director Begbies Traynor Group PLC
0161 837 1700
Guy Peters Shore Capital & Corporate Ltd 020 7408 4090
Reg Hoare/Katie Hunt /Will Henderson Smithfield
020 7360 4900
Information on BTG can be accessed via the Group's website at
www.begbies-traynorgroup.com
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