Ultimate Leisure raises £25m war chest to spend on acquisitions
Bar and nightclub operator Ultimate Leisure is to raise an additional £25m through a share placement with existing backers to pursue "substantive acquisitive growth".
The company intends to place 14,792,000 ordinary shares with the company's two largest investors Reuben Brothers Ltd and the Dawnay, Day Group.
Valued at 169p per share a 5% discount compared with the company's closing share price on 19 January, the placing will raise both backers' control in Ultimate to more than 30%.
Under London Stock Market rules this would normally trigger an offer period at the company but this has been waived by the market's takeover panel after a request from the involved parties.
Mark Jones, executive chairman at Ultimate, said: "With the repositioning of the business through an extensive investment in refurbishment, marketing and training, largely completed we are now looking to take the group forward to the next stage of its development."
Jones has previously stated that expansion is the way forward for the group and acquired the Prohibition bar group from Living Ventures in 2005 with national roll-out in mind.
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By Chris Druce
E-mail your comments to Chris Druce](mailto:chris.druce@rbi.co.uk?subject=Ultimate Leisure raises £25m war chest to spend on aquisistions) here.
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