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Coats Group PLC on Thursday said it has raised £92 million via a placing and retail offer of 145.2 million shares.
On Wednesday, Coats said it had agreed to buy Rhenoflex GmbH, a maker of sustainable structural materials for the footwear industry, for an enterprise value of €115 million. It explained that cash consideration will be €107 million, after deducting assumed retirement liabilities and other adjustments.
Coats, an Uxbridge, England-based industrial thread maker, also announced a placing and retail offer to fund the acquisition.
On Thursday, it said 144.6 million shares have been placed by Citigroup Inc and Peel Hunt LLP at a price of 63.5p per share. This represents a discount of 4.5% to the closing price of 66.5p each on Thursday, being the last business day before the announcement.
In addition, existing retail investors of the company subscribed to 682,052 new shares via the retail offer.
In total, the placing and retail offer raised around £92 million and comprised of approximately 145.2 million shares, around 10% of the company's issued share capital.
As part of the placing Chair David Gosnell and Chief Executive Officer Rajiv Sharma subscribed to 157,480 shares each, worth just shy of £100,000. Meanwhile, Chief Financial Officer Jackie Callaway bought 118,110 shares, worth around £75,000. Gosnell now holds a 0.1% stake in the company, Sharma holds a 0.3% stake and Callaway holds a 0.02% stake.
Shares in Coats were down 1.1% to 65.80 pence each in London on Thursday morning.
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