Croma aims to acquire rival security firm CSS Group in £5m deal
02.03.2012 - Croma Group announced a further step in the Group's strategy of targeting the facilities service sector as the engine for its future growth with the signing of a sale and purchase ...
Croma Group announced a further step in the Group's strategy of targeting the facilities service sector as the engine for its future growth with the signing of a sale and purchase agreement on 1 March 2012 to acquire the entire issued share capital of CSS Total Security Limited, CSS Locksmiths Limited and Alarm Bell Company Limited, a security services provider based in Southampton. The Group is also pleased to announce that it has completed a conditional placing of new ordinary shares to raise £5 million, part of the proceeds of which will be used to fund the Acquisition.
The Acquisition, which will constitute a reverse takeover under the AIM Rules, and the Placing is conditional upon the approval of Croma's shareholders at a general meeting.
Share Consolidation, Loan Note Conversion and Change of Name
The Company is proposing a share consolidation, in the terms of which every 50 ordinary shares of 0.1 pence in the capital of the Company will be consolidated into one ordinary share of 5 pence. The Company is also proposing to change its name to Croma Security Solutions Group plc to more accurately reflect the trading of the Enlarged Group. In addition, the Company has agreed with certain loan noteholders that £575,000 of loan notes issued by the Company will convert into ordinary shares at the placing price upon Admission.
One effect of the Share Consolidation will be that any shareholder holding fewer than 50 existing ordinary shares of 0.1 pence each at the close of business on 23 March 2012 will not hold any ordinary shares in the Company following the share consolidation becoming effective.