Begbies Regulatory News (BEG)

20 Mar 2007 07:01

Begbies Traynor Group PLC20 March 2007 BEGBIES TRAYNOR GROUP PLC 20 March 2007 Placing of 5,263,159 new Ordinary Shares and 9,210,526 Existing Ordinary Sharesof 5p each at a placing price of £1.52 per share Begbies Traynor Group PLC ("BTG" or the "Group") is pleased to announce that ithas today, through Shore Capital, arranged the placing of 5,263,159 new ordinaryshares of 5p, raising £8 million before expenses for the Group. Also, in response to the significant level of demand, Ric Traynor (ExecutiveChairman) and Andrew Dick (Chief Operating Officer), acting jointly, haveagreed, through Shore Capital, to place 4,605,263 existing ordinary shares eachat the same price, which will not only help to satisfy this demand, but willimprove further the level of free float and liquidity in the shares of BTG. The new ordinary shares will rank pari passu in all respects with the existingordinary shares and their admission to trading on AIM is expected to take placeon 26 March 2007. The proceeds from the placing will be used to fund the Group's stated strategyof growth organically and by acquisition. Currently under discussion arepotential acquisitions in a variety of areas such as: business insolvency;fiscal consultancy; valuations and legal support services. The Group is activelyseeking further opportunities in these areas as well as in the field ofcorporate finance, in which it recently acquired Quantum Finance Limited, theleading independent corporate finance practice in Newcastle, spreading theGroup's influence into the North East and becoming BTG's fourth corporatefinance team. The Group is also exploring the possibility of a modest overseasinvestment in South Africa. BTG anticipates that the funds raised will provideadequate resources for all planned acquisitive and organic growth for the nearto medium term. Following the placing, the issued share capital of the Group will increase by6.96% to 80,861,968 Ordinary Shares of 5 pence each. The combined holdings ofRic Traynor and Andrew Dick (including the holdings of their wives) will reducefrom 57.12% to 42.01% of the total issued share capital and total voting rights. As a result of the placing, a number of new institutional investors will becomeshareholders, and Caledonia Investments plc will become a significantshareholder , with 7,516,842 ordinary shares in BTG representing 9.30% of theincreased issued share capital. Ric Traynor, Executive Chairman of Begbies Traynor Group PLC, said: "We are delighted with the very strong demand for BTG's shares from a variety ofblue chip institutions, both existing and new investors, and very much welcomeour new shareholders. Since coming to AIM in October 2004, BTG's growthstrategy has been proved effective . These new funds, together with existingfacilities, will provide adequate resources for BTG to continue its next plannedphase of organic and acquisitive growth." Tim Ingram, Chief Executive of Caledonia Investments plc , said 'We are very pleased to have the opportunity to take a significant stake inBegbies Traynor Group through this share placing. The company has an excellenttrack record and we believe that Caledonia's long term investment approach willsupport the management team in the future growth of this already successfulbusiness.' Enquiries please contact: Ric Traynor - Executive Chairman Begbies Traynor Group PLC 0161 839 0900Graham McInnes - Finance Director Begbies Traynor Group PLC 0161 839 0900Guy Peters Shore Capital & Corporate Ltd 0207 408 4090 Information on BTG can be accessed via the Group's website atwww.begbies-traynor.com Notes to Editors Caledonia Investments plc is a UK investment trust company, listed on the LondonStock Exchange. It invests in a focused portfolio of significant stakes incompanies and situations where it believes there to be good opportunities forbuilding value. For more information please see www.caledonia.com This information is provided by RNS The company news service from the London Stock Exchange