Source - Alliance News

More Acquisitions PLC on Friday suspended its shares from trading due to a planned acquisition of Wiltshire, England-based steel distributor Megasteel Ltd.

The special purpose acquisition company said Megasteel is valued at between £49.5 million to £63 million on completion of the acquisition. Consideration will involve the issue of between 2.2 billion to 2.8 billion new shares, at a price of 2.25 pence per share.

Megasteel is a distributor of high-quality steel for the prestressing and post-tensioning of concretes in the UK. Prestressed concrete is a critical building product used in the UK construction market.

More said the proposed acquisition values its current issued share capital at £2.81 million, compared to £1.19 million at closing of 0.9p per share on Thursday.

More Acquisitions Executive Director Roderick McIllree said: ‘After undertaking intensive due diligence, we believe that Megasteel stands out as a high-value, profitable investment for our shareholders. Megasteel is well-established and a leading player in its sector, with a long history of profitability and industry excellence, and we believe that it has the potential to deliver long term value to More Acquisitions and its shareholders.’

Accordingly, More said it has requested its shared to be suspended temporarily with effect from today.

In March, the company listed on the London Main Market after raising £1.2 million from placing 120.0 million shares at 1 pence each.

More Acquisitions shares are suspended, last traded at 0.92 pence each.

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