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RNS Number : 8584R
CVS Group plc
14 December 2016
14 December 2016
Capitalised terms used but not defined in this announcement
shall have the meanings given to such terms in the announcement of
the Proposed Accelerated Bookbuild released earlier today. This
announcement contains inside information for the purposes of
Article 7 of EU Regulation 596/2014.
CVS Group plc
("CVS" or the "Company")
Result of Successful GBP30.2 million Placing and Total Voting
Rights
CVS Group plc (AIM: CVSG), one of the UK's leading providers of
integrated veterinary services for small and large animals, is
pleased to announce that, following its announcements on 13
December 2016, the Company has successfully raised a total of
GBP30.2 million (before expenses) by means of an accelerated
bookbuild with existing and new investors, and will issue 3,019,500
new Ordinary Shares (the "Placing Shares") at a price of 1000 pence
each (the "Placing Price"). The issue of the Placing Shares is
being made under existing authorities and remains subject to
Admission.
Key Highlights
-- Placing to raise GBP30.2 million through the issue of
3,019,500 Placing Shares to existing and new investors, at a
Placing Price of 1000 pence per Placing Share
-- The Placing was approximately 2.4 times oversubscribed
-- The Placing Price represents a discount of 3.85 per cent. to
the Closing Price on 12 December 2016, being the last trading date
prior to announcement of the proposed Placing
-- The net proceeds of the Placing, being approximately GBP29.5
million, will be used primarily to facilitate further acquisitions
in the UK and the Netherlands, in line with the Group's existing
growth strategy
-- Following Admission, the Placing Shares will represent
approximately 4.76 per cent. of the share capital of the Company,
as enlarged by the issue of the Placing Shares
Simon Innes, Chief Executive of CVS, said:
"The Board is pleased to conclude this fundraising with the
strong support of shareholders and new investors. We remain excited
by the continuing prospect to build further on our position as a
leading provider of integrated veterinary services in the UK, as
well as by that in the Netherlands, which we recently entered with
our first two acquisitions and which we see as offering a
compelling opportunity to develop a business on a similar basis to
our UK one.
"Our established network and experienced team offers significant
opportunities for further growth, and we look forward to building
further value in the business, through further acquisitions and
continuing organic growth. We remain focused on delivering
excellent customer service and care and on providing high quality
training and career opportunities for our staff."
Expected Timetable to Admission
Application has been made to the London Stock Exchange for
admission of the Placing Shares to trading on AIM. It is expected
that Admission and the commencement of dealings in the Placing
Shares will take place at 08.00 a.m. on or around 16 December 2016
and that dealings in the Placing Shares on AIM will commence at the
same time.
The times and dates above refer to London time and are subject
to change by the Company (with the agreement of N+1 Singer), in
which case details of the new times and dates will be notified to
the London Stock Exchange and the Company will make an appropriate
announcement through a Regulatory Information Service.
Placing Shares
The Placing Shares will, when issued, be subject to the articles
of association of the Company and credited as fully paid and will
rank pari passu in all respects with the Existing Ordinary Shares,
including the right to receive all dividends and other
distributions declared, made or paid in respect of such Ordinary
Shares after the date of Admission.
Total Voting Rights
Following Admission on 16 December 2016 the Company's issued
share capital will comprise 63,412,323 Ordinary Shares. From
Admission, the figure of 63,412,323 may be used by shareholders in
the Company 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 the Company
under the FCA's Disclosure Guidance and Transparency Rules.
Related Party Transaction
Funds and accounts under management by direct and indirect
investment management subsidiaries of BlackRock, Inc. (together
"BlackRock") are participating in the Placing, having conditionally
agreed to subscribe for 456,004 Placing Shares pursuant to the
Placing. As BlackRock is a Substantial Shareholder in the Company
(as defined by the AIM Rules), its participation in the Placing is
a related party transaction for the purposes of the AIM Rules.
Following Admission, BlackRock is expected to have a
shareholding of 12,173,262 Ordinary Shares, representing
approximately 19.20 per cent. of the Enlarged Issued Share
Capital.
The Directors, having consulted with the Company's Nominated
Adviser, N+1 Singer, consider the terms of BlackRock's
participation in the Placing to be fair and reasonable insofar as
the Company's shareholders are concerned.
Conditions of the Placing
On 13 December 2016, the Company entered into the Placing
Agreement with N+1 Singer pursuant to which N+1 Singer agreed to
use reasonable endeavours to place the Placing Shares at the
Placing Price. Under the Placing Agreement, the Company has given
N+1 Singer customary warranties and indemnities.
The Placing remains conditional upon the Placing Agreement
becoming unconditional and not having been terminated in accordance
with its terms and Admission of the Placing Shares.
For further information please contact:
Enquiries:
CVS Group plc Tel: 01379 644 288
Simon Innes, Chief Executive
Nick Perrin, Finance Director
N+1 Singer (Nominated Adviser Tel: 020 7496 3000
& Broker)
Aubrey Powell
Nick Owen
Liz Yong
James Hopton
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
December 14, 2016 08:01 ET (13:01 GMT)