TIDMAVA TIDMTTM
RNS Number : 5274T
Avanti Capital PLC
20 November 2013
Avanti Capital Plc
Investee Company, Eclectic Bar Group plc announces Admission to
trading on AIM raising GBP15 million
Avanti Capital Plc (Avanti), the AIM-listed investment company,
is pleased to announce that Eclectic Bar Group plc, one of the UK's
leading premier late night businesses, has today announced a
successful fundraising of GBP15 million and the proposed admission
of its ordinary share capital to trading on AIM on 28 November
2013. At the same time, Avanti has been able to sell down the whole
of its shareholding. Including repayment of its current loan,
Avanti will receive (net of costs including carried interests)
approximately GBP9m.
Richard Kleiner, director of Avanti, said "Avanti have been
delighted to have been closely involved with the development of
Eclectic and working with Reuben Harley and the rest of the
management team to see the business grow and make the transition to
a public company. Avanti believes that Eclectic has further
substantial growth opportunities and this transition to the public
markets should provide the business with the capital to accelerate
its growth whilst deepening and broadening its infrastructure to
ensure that such growth will continue to be built on firm
foundations. We wish Reuben and the rest of his team all the best
for the future."
Following completion of the IPO formalities, the intention of
the board of Avanti to return the substantial majority of the sale
proceeds (net of carried interests) to its shareholders in early
2014".
For further information on Avanti please contact:
Avanti Capital Plc
Richard Kleiner Tel: 0207 299 1455
Canaccord Genuity Limited
Bruce Garrow/Joe Weaving Tel: 020 7523 8350
Media enquiries - David Bick Tel: 07831 381201
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN
NOR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OF SUCH JURISDICTION
This announcement is an advertisement and not a prospectus or an
admission document and does not constitute a recommendation
regarding any securities. Investors should not subscribe for or
purchase any shares referred to in this announcement except on the
basis of information in the admission document to be published by
Eclectic Bar Group plc in due course in connection with the
proposed institutional placing and admission of the entire issued
and to be issued ordinary shares of Eclectic Bar Group plc (the
"Ordinary Shares") to trading on AIM, a market operated by London
Stock Exchange plc (the "Admission Document"). Copies of the
Admission Document will, following publication, be available from
the Company's registered office.
This communication is directed only at (i) persons who have
professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 ("Order") (investment
professionals) or (ii) persons falling within Article 49(2)(a) to
(d) of the Order (high net worth companies, unincorporated
associations etc) (all such persons referred to above being
"Relevant Persons"). Any investment activity to which this
communication relates will only be available to and will only be
engaged with Relevant Persons.
For Immediate Release
20 November 2013
Eclectic Bar Group plc
("Eclectic", the "Company" or the "Group")
Admission to trading on AIM raising GBP15.0 million
Eclectic, one of the leading operators of premium bars in the
UK, is pleased to announce a successful fundraising of GBP15.0
million (the "Placing") and the proposed admission of its ordinary
share capital to trading on AIM on 28 November 2013
("Admission").
Highlights
-- Eclectic has conditionally placed a total of 6,562,500 new
Ordinary Shares at a price of 160 pence per Ordinary Share (the
"Placing Price") raising approximately GBP10.5 million (gross) for
the Company. The market capitalisation of Eclectic on Admission at
the Placing Price will be approximately GBP20.6 million.
-- In addition, a further 2,835,861 Ordinary Shares held by the
Group's principal shareholder, Avanti Capital plc ("Avanti"), will
be sold at the Placing Price pursuant to the Placing for
approximately GBP4.5 million enabling Avanti to sell down
completely its shareholding in the Company.
-- Eclectic will use the net proceeds of the Placing to repay a
shareholder loan owed to Avanti of approximately GBP7.3 million
with surplus net funds raised of approximately GBP1.8 million to be
used to fund organic growth prospects and new site acquisition
opportunities.
-- Immediately following Admission, management will hold 27.0
per cent. of the Ordinary Shares which will be subject to a 12
month lock-in period.
-- Admission to AIM and the commencement of dealings are
expected to begin at 8.00 a.m. on 28 November 2013 under the ticker
symbol BAR.
-- Panmure Gordon (UK) Limited is acting as Nominated Adviser and Broker to the Group.
Reuben Harley, Chief Executive Officer of Eclectic,
commented:
"We are delighted with the support and reception that we have
received from investors resulting in additional funds being raised
allowing Avanti to exit completely and Eclectic to begin life on
AIM with a larger free float and a supportive institutional
shareholder base.
"We now have an optimum capital structure and experienced
management team to continue to grow the business."
For further information, please contact:
Eclectic Bar Group plc Tel: 020 7376 6300
Reuben Harley, CEO
John Smith, CFO
Panmure Gordon Tel: 020 7886 2500
Corporate Finance
Andrew Godber / Atholl Tweedie / Duncan
Monteith
Corporate Broking
Adam Pollock / Charles Leigh-Pemberton
College Hill Tel: 020 7457 2020
Matthew Smallwood
Justine Warren
Group Overview
Eclectic is a leading operator of premium bars in the UK.
Eclectic's portfolio comprises 20 venues located in major towns and
cities, predominantly targeting a customer base of sophisticated
students midweek and stylish over-21s and young professionals at
weekends. The Company focuses on delivering added value for its
customers, with premium product ranges, high-quality music and
entertainment, and a commitment to high service levels and
standards.
The Group trades across its estate under a variety of brands,
including Embargo 59, Lola Lo, Sakura, Po Na Na and Fez Club. These
brands have proven themselves to be consistently cash-generative,
continuing to trade well even since the start of the global
financial crisis of 2008. Eclectic has established a stable
financial track record over the past five years with turnover in
the year ended 30 June 2013 of GBP21.2 million, representing a two
year CAGR of 16.9 per cent., and Group EBITDA of GBP3.0 million,
representing a two year CAGR of 16.7 per cent.
The Group's management team, led by Reuben Harley, who has over
25 years' experience of working in the UK pub and bar industry, is
implementing a strategy to grow the business through the
development of new sites either under the Company's existing brands
or using brands which can be successfully maintained, as well as
business acquisitions as appropriate opportunities present
themselves.
The bar market in the UK remains fragmented, and the Company is
presented with a significant number of opportunities for
acquisitions of both new sites and businesses. The management team
has demonstrated its ability to achieve successful openings of new
venues, on average exceeding its target returns.
Placing Statistics
Placing Price per Ordinary Share 160 pence
Number of new Ordinary Shares being issued pursuant
to the Placing 6,562,500
Number of Sale Shares being sold by Avanti 2,835,861
Total number of Placing Shares 9,398,361
Number of Ordinary Shares in issue at Admission 12,862,500
Percentage of Enlarged Share Capital represented 51.0 per cent.
by the new Placing Shares
Gross proceeds of the Placing receivable by the GBP10.5 million
Company
Estimated net proceeds of the Placing receivable GBP9.1 million
by the Company
Estimated net proceeds of the Placing receivable GBP4.4 million
by Avanti
Estimated market capitalisation of the Company GBP20.6 million
at the Placing Price at Admission
TIDM BAR
ISIN GB00BG49KW66
Website www.eclecticbars.co.uk
----------------------------------------------------- -----------------------
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority, is acting
exclusively for the Company and no-one else in connection with this
announcement, the proposed Placing and Admission. Panmure Gordon
(UK) Limited will not regard any other person as its client in
relation to the matters described in this announcement and will not
be responsible to anyone other than the Company for providing the
protections afforded to its clients, nor for providing advice in
relation to the Placing and Admission, the contents of this
announcement or any transaction, arrangement or other matter
referred to herein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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