Michelmersh raises £3m for acquisition

1st Mar 2010 14:52

Michelmersh Brick is raising £10m to fund the purchase of Freshfield Lane Brickworks (FLB), which makes clamp-fired stock bricks in Sussex.The AIM-listed brickmaker has conditionally placed 10m shares at 30p each, a 22% discount to the closing market price of 38.5p on Friday.It is paying £5m in cash for FLB plus £3m of consideration shares at 39p and £2m in loan notes."These funds allow us to proceed with the acquisition of FLB which will enable us to take advantage of the current opportunities in the south east England market," said chairman Eric Gadsden. "This enables us to expand our operations and significantly broaden our customer base. We believe it is a very compelling move forward for the business and one from which we can create real shareholder value and establish a strong platform for the future of Michelmersh."Gadsden is pumping in almost £325,000 into the company via the placing, taking his stake in the business to 39%.