ARE.L Share News (ARE)

(Sharecast News) - Arena Events Group is looking to raise as much as £20m by way of a placing of up to 33.33m new shares at a price of 60p as it agreed the acquisitions of Stuart Rental and TGP to boost its overseas operations.The AIM-listed group said the agreed acquisition of California's Stuart Rental will provide it with an immediate entry point into the west coast US market, bolstering its existing tenting business across the nation. The addition of TGP, an exhibition stand design and build company based in Dubai, will offer diversification into exhibition services and improve the seasonal profile of the group's Middle East business.Initial consideration for the Stuart acquisition was $10.6m, plus an additional earn-out consideration of up as much as $6.4m.For TGP, the consideration was $7.2m, which includes the repayment of debt and working capital, plus an additional earn-out consideration of up to a maximum of $10.7m.Both earn-out payments were subject to EBITDA performance.Arena expects both acquisitions to be earnings enhancing in the first full year following completion.Chief executive Greg Lawless, said, "These acquisitions will significantly broaden our global operations whilst complementing our existing product range and fit our stated strategy of increasing our comprehensive suite of products over a broader geographic reach.""These acquisitions are designed to deliver top-line revenue growth, an improvement in EBITDA margins and will assist in reducing the overall seasonality of the business," he added.As of 0830 BST, Arena Events shares had sunk 7.35% to 63p.