Last checked at 
LONDON (Alliance News) - Eclectic Bar Group PLC said Friday it has entered into a conditional agreement to buy The Brighton Marine Palace & Pier Co, which owns and operates Brighton Pier, for GBP18.0 million in cash in a reverse takeover.
This comes one month after Eclectic, which runs bars for students and young professionals, said it swung to a profit in the first half of its financial year ended December 27, reporting pretax profit of GBP300,000 and revenue of GBP10.7 million.
Eclectic said it proposes to fund the acquisition through a share placing of up to 1.9 million shares to raise proceeds of no less than GBP8.5 million, in an accelerated bookbuild, with the remaining to be funded through a new GBP13.0 million debt financing agreed with Barclays Bank PLC.
Eclectic said the new facility comprises of a GBP12.0 million term loan facility and a GBP1.0 million revolving credit facility, with this replacing all current facilities available to the group. Eclectic added the outstanding amount of its current revolving credit facility is intended to be repaid within two months of the completion of the acquisition.
As the acquisition is a reverse takeover, it will be subject to shareholder approval, and Eclectic's shares will be suspended from trading on AIM until it has published an admission document and circular convening a general meeting.
Eclectic added that once the acquisition is completed, Chief Executive Reuben Harley will step down from the board and intends to sell 1.9 million shares in the placing.
"We are very pleased to announce the acquisition of Brighton Pier, one of the most iconic and instantly recognisable attractions in the UK. The pier is hugely popular with the British public and it occupies a special place as a landmark at the heart of Brighton," said Executive Chairman Luke Johnson.
"This acquisition represents the next stage in the group's development, expanding the company's existing portfolio and using the enhanced board's diverse skillset to become a differentiated operator of leisure and entertainment assets," Johnson added.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
