Private property group Terrace Hill is reversing into AIM-listed residential developer CapitalTech in a £10m deal.
CapitalTech will acquire Westview, of which Terrace Hill is a subsidiary, for £10.243m in shares issued at 12.65p each.
Both companies are controlled by the family interests of Robert Adair, which will control 83% of the enlarged CapitalTech (up from 64%).
The group will be renamed Terrace Hill.
As part of the deal, CapitalTech will also buy a commercial property in Wellingborough, Northamptonshire, from Robert Adair, his mother and his sister for £152,000 in cash.
The enlarged group will buy back 2m shares, also at 12.65p per share for cancellation. It will have a market capitalisation of £19.7m (based on a share price of 12.65p).
CapitalTech said that the deal would combine its net asset value growing capabilities with the revenue profits Terrace Hill earns from development and trading.
It said that Terrace Hill would also benefit from having a higher profile as a public company.
Terrace Hill directors Nigel Turnbull, Robert Lane, Thomas Walsh, Philip Leech and Kenneth Grundy will all join the board of the new quoted company.
Also today, CapitalTech reported a pretax profit of £53,284 for the year ending 30 April compared with a loss of £4.6m the previous year.
The value of its portfolio increased to £75m from £49.5m.
EGi News 20/08/02
