Facilities firm targeted in £1.6m deal
A Warrington business that specialises in providing facilities for people with physical disabilities is being bought in a deal worth £1.6m.
The Plus-listed investment vehicle Ely Capital said today is would seek shareholder approval for its acquisition of Strategic Property Solutions (SPS) at the end of the month.
Under the terms of the deal Ely will buy SPS for a consideration of 16.3 million Ely shares. On the basis of these shares being worth 10p the company has valued the deal at £1.6m.
SPS works closely with local authorities and NHS trusts to deliver new sites and refurbish health and social care developments including supported living facilities, community hospitals and specialist units.
For the year to January 31 2008, SPS’s audited accounts showed revenue of £50,000 and a loss before tax of £590,000.
If the deal is approved Ely has agreed to lend £100,000 to SPS for general working capital purposes with interest of 12%.
The company also said today it intended to de-list from the junior market stating that, “the current market environment does not justify the benefit obtained”. It said there had only been five trades in Ely shares since the company’s admission to Plus in December 2007.
