Gresham House proposal of acquisition and placing of new ordinary shares – Gresham House (GHE) has announced two proposals today. Firstly, it is planning to acquire an alternative investment fund manager and secondly to raise approximately £15.0m by a placing of new ordinary shares.
Aquisition
Gresham House is a specialist alternative asset manager and it is looking to acquire a similar alternative investment fund manager called FIM Services Limited, to add broaden its investment reach. FIM specialises in UK real assets, specifically sustainable forestry and renewable energy investments, which is an area that Gresham House also covers. Upon completion, Gresham House’s AUM will be over £1.5 billion across five specialist alternative investment strategies: forestry, new energy, UK housing and infrastructure, private assets and strategic public equity.
The two companies are in talks for Gresham House to acquire the entire issued share capital of FIM by its wholly-owned subsidiary, Gresham House Holdings Limited (“GHH”), for a total consideration of up to £25.0 million on a cash-free, debt-free basis (subject to certain adjustments).
The placing of new ordinary shares
In addition, Gresham House is proposing the conditional placing of new ordinary shares in the company, which will be known as Placing shares. These will be issued at a price of 410 pence per Placing Share to raise approximately £15.0 million (before expenses). The proceeds of the placing will be partially used to satisfy the cash payable to acquire FIM. Gresham House have said that the book build began as they announced the proposal.
GHE : Gresham House proposal of acquisition and placing of new ordinary shares