Construction Northern Bear is looking to double its three acquisitions already made this year after securing permission for a £3.15 million share placing.
The County Durham-based business held a general meeting yesterday where resolutions were passed to allow the placing of 2,415,250 new ordinary shares to raise the capital. Also 13,793 shares will also be issued to Northern Bear’s adviser Strand Partners.
The new £3.15 million of funds from the placing will be added to the company’s resources and bank facilities to finance purchases.
The basic details of the deals have been agreed by the group and completion of all three is expected by the end of this year.
The company said earlier this month that it was aiming to continue its strategy of buying mature, northeast owner-managed businesses which could demonstrate consistent profitability.
Executive chairman Jon Pither and his team have bought property refurbishment firm MGM, specialist asbestos removal business Chirmarn Holdings and construction company Hastie D Burton in the first six months of 2007.
Northern Bear’s share price has climbed steadily since its float on AIM last December at 88p â“ and stood at 142.9p when the markets closed last night. Today the share price has leapt up over 4% to 147.50p.
Northern Bear now employs about 350 people and in the year up to April had a £4.75 million turnover, although operated at a £60,000 loss.
