Additional capital will help in acquisition of teams and businesses
THB Group has announced that agreement was reached yesterday for certain investors to subscribe for 2.75m new ordinary shares and £5.6m of new convertible preference shares. The deal will raise £7.5m before expenses for the company.
THB acquired Lloyd’s broker PWS International in January as well as certain overseas interests of the PWS Group.
THB said in a statement: “The board considers that the PWS acquisition is strategically important to the company's future development and presents a significant opportunity for the group through access to key growing international markets. The board of THB considers that its ability to maximise this opportunity will depend on raising capital to support this growth.”
It added: “The board believes that the subscription provides an attractive form of long term funding particularly given the current financing environment. It is the board's view that the company would not have been able to obtain equivalent funds from alternative sources on better terms.”
The proceeds of the subscription will be used to support the expansion of the business and will, in part and in the short term, be applied to pay down existing bank borrowings. The board anticipates this expansion will be made through acquisitions of teams and businesses, primarily to strengthen technical and distribution capabilities in its London broking operation and core overseas markets.
Shareholder approval is required to effect the proposed capital raising and a general meeting of the company will be held 27 October 2008.
