May 2008
Humberts shareholders to vote on lifeline deal
By MIKE GOODMAN,
City correspondent
SHAREHOLDERS in Humberts Group are to vote later this month on a deal which
will provide a multi million pound lifeline.
Talks on a possible takeover bid for Humberts, which were revealed earlier this
year, have since ended, the board admitted last month. Owners of businesses which
were bought out by Humberts have agreed to be paid in loan stock and shares.
The deal will save the group at least £2.3 million cash this year, according
to executive chairman John McLean, as the business owners were originally due
to be paid in cash.
The deal was hammered out on the eve of the group’s annual meeting on April
25 and was accepted by more than 80 per cent of shareholders.
“We only finalised the deal at 8 pm on the eve of our AGM,” Mr McLean
told EAN.
“It has to be put to shareholders at a special meeting scheduled for May
14 but I am sure it will be passed.
“Not only will it improve our balance sheet but it will help lock these
businesses into the group and help us create an integrated property services
group.”
However, he did not rule out further sales of Humberts subsidiaries to raise
cash.
Under the terms of the proposed deal, Humberts will issue new shares plus convertible
loan notes which can be converted into Humbert shares at a 35 per cent discount
on the price at conversion.
In some cases the discount will be 37.5 per cent. The owners of the loan notes
can convert these into shares any time during the notes’ two-year lifespan.
The Humberts Group, which added 20 offices to its portfolio last year to start
2008 with 81, had unveiled a £17 million loss, when its 2007 full year
results were finally announced on February 21.
The shares, listed on the Alternative Investment Market, traded at only 5.5p
following the annual meeting and the announcement of the cash-saving deal. At
their peak last year, they reached 100p.
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