Ultimate to raise £25m for acquisitions

Ultimate Leisure, the Newcastle-based late-night operator, has announced it is to raise £25m by way of a conditional issue of shares as it looks at a number of acquisition options.

The company said it intends to issue 14,792,900 new ordinary shares of a price of 169p per share, which will be acquired by Reuben Brothers and the Dawnay, Day Group, its two largest investors.

We are now looking to take the group forward to the next stage of its development​Mark Jones, chairman of Ultimate

The investment would increase the interests in relevant securities of Ultimate of each of Reuben Brothers and Dawnay, Day to more than 30%, the level at which the Takeover Code normally requires a general offer to be made to all shareholders.

However, the Panel on Takeovers and Mergers has agreed to waive this requirement if shareholders, other than the Reuben Brothers and Dawnay, Day, approve on a poll 'whitewash' waivers at an Extraordinary General Meeting to be called in due course.

Ultimate said that it believes it has now reached the stage where more substantial acquisitive growth may now be contemplated and it is reviewing a number of acquisitions.

Mark Jones, chairman of Ultimate, said: "With the repositioning of the business through an extensive investment in refurbishment, marketing and training, largely completed we are now looking to take the group forward to the next stage of its development.​

"We are delighted that our major shareholders have demonstrated their confidence in our plans."

Last week the company acquired the "The Cotton Factory" bar and lounge in Huddersfield from Daisy Chain Inns for £3.3m, taking its estate to 36 sites.

The company also reported a 1% increase in like-for-like sales for December.