CBG Announce Agreement With PenMc

by Stewart Douglas

Story link: CBG Announce Agreement With PenMc

The board of directors of CBG and the Independent Director have today announced that an agreement has been reached by Zeus Capital in conjunction with CBG to acquire the total available share capital of PenMc in consideration of shares in its own business, with a view to securing their takeover approach.

The CBG offer comes in at a ratio of 1:1000, that is to say they have issued one share in their company for every 1000 shares held, reflecting the extent of outstanding capital currently at PenMc, in terms of both authorised residual capital and issues capital.

Alternatively, PenMc shareholders can choose to accept a premium of £0.16 for each share, again reflecting the diluted capital structure at PenMc. The total value of the offer comes in at just shy of £186,000, which would see PenMc valued above its corresponding cash value of £157,000.

The price has been dictated by mid-market rates on the 10th of December when it was agreed as being the last practical date for offer document to be drawn up which would see the deal through to completion.

The move sees continued expansion at Manchester-based CBG, which has seen several acquisitions over the last few years amidst a raft of high calibre senior appointments. Whilst the acquisition prices offered for PenMc may appear to be at a premium, it is still thought that the acquisition, were it to proceed, would become an invaluable asset for the CBG balance sheet over the coming years.

The move will require acceptance firstly by the board of directors of PenMc then followed by the shareholders in general meeting in order for it to pass. Whilst it is still early days for the transaction, it remains to be seen whether CBG will strenghten its holdings through successful completion.