Raven Russia, the AIM-listed warehouse developer, is raising £125m of new equity and buying the company out of which it originally spun for £57m.
Raven Russia is placing 125m preference shares and warrants at a price of 100p each, of which Invesco is buying £75m.
The company said the new money would ‘strengthen its financial position and enable it to take advantage of opportunities in a distressed market’.
The purchase of AIM-listed Raven Mount is being financed through the issue of 0.525 units, comprising one preference share and one warrant in Raven Russia, for every Raven Mount share. Raven Mount currently has £20.8m of cash and no debt.
The proposed acquisition is supported by Raven Mount's four largest shareholders, including Schroder Investment Management and Laxey Partners, who are also major shareholders in Raven Russia.
Once it is completed, Raven Russia directors Anton Bilton and Glyn Hirsch, who are also directors of Raven Mount, will be able to concentrate all of their time on Raven Russia.
Bilton, chairman of Raven Mount and executive deputy chairman of Raven Russia, said: ‘As the largest shareholder in Raven Mount, a company with significant cash and no debt, this proposed takeover underlines my belief in the investment strategy of Raven Russia.
‘I am effectively investing a further £15m-plus in Raven Russia, which clearly demonstrates my strong belief in the future of the company.’