Porta Communications plc, the AIM quoted international marketing and communications business, has acquired two businesses from WSM Communications Group Limited. The deal is to be financed by the issue of 7,500,000 ordinary shares of 10p each in Porta at a price of 14.075p per share, with 5,723,802 of the Consideration Shares subject to a 12 month lock-in agreement and a further 12 month orderly market agreement. The remainder of the Consideration Shares are subject to a three month orderly market agreement.
The two businesses incorporate a digital team of 12 specialists and seven print management and design specialists, providing between them full studio design and art-working capabilities and a full digital design and production unit, servicing a range of blue-chip clients. The business units generated approximately £1.3m of fee income and a small profit in aggregate in the 11 month period to February 2014.
WSM will continue to work closely with the units sold to Porta with a commitment to place digital, design and print activation work where possible to these businesses.
Commenting on the transaction, Group CEO, David Wright said: “Through our advertising agency 21:12 we are already working with the digital team on a number of client projects and are witnessing how their digital capabilities are significantly enhancing our ability to offer existing and new clients digital solutions to their wide ranging communications needs. We are also very excited to welcome the highly successful design and print team who I am sure will continue to thrive within the Porta network and client base”.
Andrew White, WSM Communications Group CEO said: “It was important for our ongoing business to find the right home for our digital, design and print teams, and we are delighted to have sold them to such a high growth business like Porta Communications who fully recognise the role they will have as a key part of Porta Communications’ future development.”
Application will be made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM. It is expected that admission will occur and that dealings will commence at 8.00 a.m. on 3 April 2014. Following admission of the Consideration Shares, the Company’s total issued share capital will consist of 223,467,153 Ordinary Shares with one voting right per share. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.
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