RHL.L Regulatory News (RHL)

30 Sep 2008 07:01



30 September 2008

Redhall Group plc

("Redhall" or the "Company" or the "Group")

Proposed £20 million Placing

Notice of General Meeting

& Trading Update

Redhall Group plc, the specialist engineering support services group, is pleased to announce a proposed placing to raise £20 million ("the Placing") to be used to part finance the consideration for the recommended cash offer ("the Offer") for Chieftain Group PLC, also announced today.

The Offer

Chieftain is a provider of outsourced industrial and engineering support services to the marine, petrochemical, power, oil and gas and process sectors

Offer value of approximately £18.6 million based on 209.2p cash per Chieftain ordinary share

Consideration to be funded from the proceeds of the conditional Placing of Redhall Shares with institutional investors and Redhall's existing cash resources 

The Placing

Placing of 8,163,266 new Redhall ordinary shares of 25p each ("Placing Shares") at a price of 245p per share, underwritten by Altium Capital Limited

Altium Capital Limited appointed as sole broker to Redhall

Conditional, amongst other things, upon the Offer becoming or being declared unconditional in all respects save as to the admission of the Placing Shares to AIM

Further details of the proposed share capital increase, authorities and powers are set out in the circular sent to Redhall shareholders today, and which includes the notice convening the general meeting of Redhall shareholders on 24th October 2008 to consider the necessary resolution

A copy of the circular is also available on the Company's website, www.redhallgroup.co.uk 

Trading update

The Redhall Board is pleased to announce that it anticipates that profit for the current financial year will be ahead of management's expectations with both divisions performing well. The Redhall Board is particularly pleased with the strong performances from those businesses acquired in 2007 which have integrated well. Redhall continues to be strongly cash generative and will have net cash as at 30 September 2008. The outlook in our markets remains positive into 2009 and beyond.

David Jackson, Chairman and Chief Executive of Redhall, commented:

"We look forward to welcoming Chieftain to the Redhall Group. This acquisition presents an excellent strategic fit with Redhall's existing group with both complementary skills and geographic locations whilst enhancing our offering within our core target markets of nuclear and oil and gas." 

"The outlook in our markets remains positive and we expect this acquisition to enable us to continue our growth and maximise the opportunities available to us in our chosen high growth sectors."

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