LONDON (Alliance News) - Arena Events Group PLC said Tuesday it has conditionally riased GBP20 million by way of placing up to 33.3 million new shares at a price of 60 pence each.
The net proceeds of the placing will be used to fund the initial consideration due for the conditional acquisitions of Stuart Rentals and the entire issued share capital of TGP.
Stuart Rentals is a California-based supplier of under-the-tent rental supplies, including tents, staging equipment and flooring. The initial consideration of USD10.6 million will be paid in cash plus additional earn-out consideration of up to a maximum of USD6.4 million.
TGP is an exhibition stand design and build company based in Dubai. Initial consideration of USD7.2 million will be paid in cash to the vendors of TGP, plus additional earn-out consideration of up to a maximum of USD10.7 million.
Chief Executive Officer Greg Lawless said: "These acquisitions are designed to deliver top line revenue growth, an improvement in earnings before interest, tax, depreciation and amortisation margins and will assist in reducing the overall seasonality of the business."
Shares in Arena Events closed up 1.9% Tuesday at 68.75 pence each.
