Colliers CRE is raising £15m from its shareholders to finance corporate acquisitions in the UK and continental Europe and to enable it to co-invest in funds
Shareholders in the AIM-listed company are entitled via a rights issue to buy one new share for every three they already own at a price of 140p each.
The issue price of 140p represents a significant 34% discount to Colliers CRE’s share price of 211.5p at the end of yesterday. Chief financial officer David Doyle said the discount was ‘typical’ for quoted company rights issues over the last two years, ranging from 20% to 36% to the theoretical ex-rights price, which for Colliers CRE is 196p.
Chief executive David Izett said: ‘We have invested significantly in growing the business over the past few years and in establishing a robust infrastructure capable of supporting increased levels of activity.
‘This fundraising will give a strong boost to the further development of our core business and our diversification into specialist services and new sectors. It will also enable us to expedite the expansion of our fund management and co-investment interests.’
Colliers CRE will use around £6m of the proceeds to acquire small businesses in the UK and Ireland. The total price of the acquisitions will be more than £6m, as the firm will also use its shares as part payment.
Around £3.75m will be used to expand in continental Europe, by owning country licences in mature countries, either solely or as a joint venture partner with other Colliers International members
The remaining £5.25m will be used to co-invest in funds set up by the firm’s Colliers Capital UK and Deanwater Estates.