Zetar acquires Kinnerton.In the initial step in the implementation of their acquisition strategy, Zetar plc has acquired the entire issued shared capital of Kinnerton, a UK manufacturer of novelty and niche chocolate confectionery, for a consideration of up to approximately 32.2 [pounds sterling] million. This consideration is to be satisfied by the payment of approximately 22.3 million [pounds sterling] in cash, approximately 3.9 million [pounds sterling] in secured loan notes and by the issue of 915,000 new Ordinary Shares, which have a value of approximately 1.8 million [pounds sterling] at the Placing Price. In addition, an earn-out of up to approximately 4.2 million [pounds sterling], to be satisfied by the issue of further secured loan notes, may become payable, dependent upon the achievement of defined profit targets by Kinnerton for the financial years ending 30th April 2005 and 29th April 2006. Nominated Adviser and Broker to Zetar Altium, has conditionally placed the Placing Shares with institutional investors at a price of 200p per share to raise approximately 10.3 million [pounds sterling] for the company. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the Placings, together with the Debt Facilities to be provided by Bank of Scotland Bank of Scotland plc is a commercial and clearing bank, based in Edinburgh, Scotland. With a history dating to the 17th century, it is the oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to , will be utilised, inter alia [Latin, Among other things.] A phrase used in Pleading to designate that a particular statute set out therein is only a part of the statute that is relevant to the facts of the lawsuit and not the entire statute. , to fund the cash consideration for the Acquisition. The Acquisition constitutes a reverse takeover A reverse takeover occurs when a publicly-traded smaller company acquires ownership of a larger company. It typically requires reorganization of capitalization of the acquiring company. pursuant to the AIM Rules and is therefore subject to the approval of shareholders which will be sought at the EGM EGM Electronic Gaming Machine EGM Electronic Gaming Monthly EGM Extraordinary General Meeting EGM Expert Group Meeting EGM Estudio General de Medios (Spanish: General Means Study) EGM Emergency General Meeting . Zetar was admitted to trading on AIM on 6th January 2005 with the purpose of identifying businesses which are suitably positioned to take advantage of the growth opportunities identified by the Directors to exist in the confectionery and snack foods A list of snack foods is shown below. For more information, see snack foods. List of snack foods Chips (Crisps)
The Directors believe that opportunities exist to grow the Kinnerton Group's business, in particular with all year round (rather than seasonal) products and exports to European customers. The Company will seek, through complementary acquisitions, to leverage the Enlarged Group's infrastructure: in minimisation of overheads; increased buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. for raw materials; centralisation of design, procurement and licensing; and improvement of operational efficiencies. In this regard the Company is actively seeking further acquisition opportunities. Visit www.kinnerton.com |
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