DM shareholders to vote on buy-out

SHAREHOLDERS in Herefordshire direct marketing and home gaming company DM will vote next month on whether to approve a proposed buy-out of the business.

The general meeting has been prompted after director Adrian Williams announced he was exercising his option to acquire 17,474,880 DM shares owned by Hugh Villiers.

The offer values the entire existing issued and to be issued share capital of DM at approximately £2.94m and the issued share capital of DM not owned by Mr Williams at approximately £0.48m.

Under the terms of the offer DM shareholders will be entitled to receive, for each DM share held, 1.8p in cash. The acquisition of the shares is expected to be completed on December 21.

The relevant shares, together with those already owned by Mr Williams represent an aggregate of approximately 83.8% of the issued share capital of DM.

The offer represents a premium of approximately 44% of DM’s closing price of 1.25p on December 6 and 20.5% of the average closing price of 1.4p per DM Share for the three month period prior to the offer.

DM said in a statement that the firm’s independent director had been told by financial adviser, Altium, that the terms of the offer were fair and reasonable so far as DM shareholders are concerned.

Mr Williams will fund the deal from his own cash resources.

The terms of the offer have been posted to shareholders and a General Meeting has been convened for January 9, 2012.

If the proposals are approved then the firm’s listing on the Alternative Investment Market (AIM) will be cancelled on January 27.