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Satellite Solutions wants placing to fund two European acquisitions
(WebFG News) - Broadband provider Satellite Solutions on Thursday proposed the acquisition of Open Sky SRL and Sat Internet Services, to be funded through a 12m premium-priced placing of new shares.
In preparation for a total consideration of 11m, made up of 9m in cash and 2m in ordinary shares, the company plans to raise 12m through a placing of ordinary shares at 8.5p per share, a premium of 4.3% to the closing mid-price on 25 April.
Andrew Walwyn, chief executive of Satellite Solutions, said: "Both Open Sky and Sat Internet are high quality businesses and we look forward to working with them as part of a significantly enlarged group. Both will form new hubs for the business with operations in Italy, Germany and Portugal, which we view as attractive growth markets."
For Open Sky, an Italian broadband provider which caters to approximately 14,500 customers, a total consideration of 5m has been agreed, of which 4.0m is cash and 1.0m of new ordinary shares.
Meanwhile, Sat Internet, a German broadband provider with approximately 6,000 customers in Germany and Austria and roughly 500 in Portugal, could be snapped up for 6.0m, comprising 5.0m of cash and 1.0m of new ordinary shares
"These two acquisitions complete our footprint expansion across Europe and we will now focus on integrating these acquisitions and driving organic growth across the enlarged business," said Walwyn.
Shareholder approval for the move will be sought at the company's general meeting on 14 May.
As of 0824 BST, Satellite Solutions' shares were up 5.83% at 8.62p.