Proposed placing

RNS Number : 7772F

Norman Broadbent PLC

03 May 2011

 



3 May 2011

Norman Broadbent Plc

("Norman Broadbent" or "the Company")

Proposed placing to raise £1.75 million

Further to the announcement of the final results of the Company for the year ended 31 December 2010 earlier today, Norman Broadbent is pleased to announce that it has raised £1.75 million (the "Placing") through the issue of 2,692,308 new ordinary shares in the capital of the Company at a placing price of 65 pence per share (the "Placing Shares") to certain Directors of the Company, Institutional and other investors. The Placing is conditional upon the passing of certain resolutions at the annual general meeting of the Company, to be held on 31 May 2011 and admission of the Placing Shares to trading on AIM ("Admission"). The net proceeds of the Placing, amounting to approximately £1.71 million, will provide the capital to implement the Company's growth strategy.

Certain directors of the Company have agreed to subscribe for an aggregate of 410,770 Placing Shares as part of the Placing. The respective subscriptions, together with the resultant holdings in the enlarged issued share capital are as follows:

	No. of Placing Shares	Shareholding following Admission	Percentage holding of enlarged issued share capital
Pierce Casey, Executive Chairman	389,232	2,611,454	24.85
Brian Stephens, Non-executive Director	7,692	12,692	0.12
Janet Cameron, Executive Director	7,692	15,523	0.15
Sue O'Brien, Group Managing Director	3,077	46,254	0.44
Ben Felton, Chief Financial Officer	3,077	3,077	0.03

In addition, Jon Moulton, a substantial shareholder of the Company, has agreed to subscribe for 389,231 Placing Shares. Following Admission, Mr Moulton will be beneficially interested in a total of 2,611,453 ordinary shares, equivalent to 24.85 per cent. of the enlarged issued share capital of the Company.

Due to the fact that he is a director of the Company and to the size of his shareholding and subscription, the participation in the Placing by Pierce Casey constitutes a related party transaction as defined by the AIM Rules. The participation in the Placing by Jon Moulton is also a related party transaction as defined by the AIM Rules, due to the size of his shareholding and subscription. The directors of the Company other than Mr Casey, having consulted with Merchant Securities Limited, the Company's nominated adviser, consider that Mr Casey's and Mr Moulton's participations in the Placing are fair and reasonable insofar as Shareholders are concerned.

Application will be made for the Placing Shares to be admitted to trading on AIM. Admission is expected to become effective and dealings are expected to commence on AIM on 1 June 2011. Following the issue of the Placing Shares, the Company will have 10,509,531 ordinary shares in issue.

Contacts:

Norman Broadbent plc Ben Felton / Sue O'Brien	020 7484 0000
Merchant Securities Limited John East / Simon Clements	020 7628 2200
Buchanan Communications Limited Tim Anderson / Isabel Podda / Christian Goodbody	020 7466 5000

 

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