LONDON – Rockpool Acquisitions Plc, a listed particular function acquisition firm (SPAC) London Inventory Trade (LON:), has signed a principal settlement for the potential acquisition of European Lingerie Group AB (ELG AB), with the intention of readmitting the mixed entity to the principal market. The deal, if accomplished, would represent a reverse takeover and prompted Rockpool to quickly droop its buying and selling.
ELG AB, a vertically built-in lingerie group whose origins date again to 1885, is acknowledged for its manufacturers together with Felina, Senselle and Conturelle. The group operates manufacturing amenities in Germany, Hungary and Latvia and provides materials to different lingerie producers by its Lauma materials division.
The transaction is structured to settle ELG AB’s consideration by the problem of latest odd shares in Rockpool, with a valuation set at 10p per share. This worth displays a big premium to the median closing worth of two.85p on Tuesday.
In 2023, ELG AB reported income of at the least €53 million and adjusted EBITDA of at the least €2.1 million, with ongoing initiatives to additional enhance EBITDA. The acquisition is anticipated to be accompanied by fundraising efforts by Rockpool and ELG AB, supposed to offer extra working capital and fund new enterprise initiatives.
Completion of the acquisition is topic to a number of circumstances, together with due diligence, a proper sale and buy settlement and regulatory approvals. Acquisition and re-entry prices will initially be coated from Rockpool’s money reserves, with subsequent contributions from ELG as outlined within the press launch.
Rockpool’s founders are anticipated to obtain four-year choices on 4% of Rockpool’s absolutely diluted share capital following readmission, with a strike worth of 11 pence per share, in addition to a money bonus on readmission.
The exclusivity interval for the transaction ends on June 30, 2025, with provisions for termination of negotiations below sure circumstances.
Mike Irvine, co-founder of Rockpool, stated he was assured within the acquisition’s potential worth creation for Rockpool and ELG AB shareholders. Indrek Rahumaa, CEO of ELG AB, highlighted the strategic advantages of the transaction, together with the usage of Rockpool shares as acquisition foreign money and capital to execute deliberate movie star model launches and enhancement of the enterprise mannequin. distribution.
LYCRA Firm, a significant provider to ELG AB, expressed enthusiasm for a better relationship following the acquisition.
This report relies on a press launch from Rockpool Acquisitions Plc.
This text was generated with the assist of AI and reviewed by an editor. For extra info, seek the advice of our Basic Phrases and Situations.
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