PUB Punch Tvns

An investment vehicle backed by serial entrepreneur Hugh Osmond Friday said it planned to float on the London Stock Exchange in February.

The vehicle, which will be used to buy and restructure an unidentified major U.K. company, marks the return to the stock market of the "cash shell," an investment structure commonly used during the dotcom boom days.

Cash shells are typically companies that don't make products or own assets. When publicly traded, they typically exist as vehicles to acquire or trade companies.

But in a departure from recent years, when they were often used as a way to give smaller companies access to the market without the time and expense of a listing, this venture is designed as a vehicle to buy and restructure an over-leveraged business.

The vehicle, Horizon Acquisition Company, plans to raise up to GBP500 million in an initial public offering, the company said in a press statement.

Horizon said it would likely be a U.K.-based company with an enterprise value of between GBP1 billion and GBP3 billion, although a larger business may be considered. The company will use the cash generated in the placing primarily to sell down the debt of the acquired company and restructure the business, allowing existing investors to exit.

Closing of the order book, final prospectus and allocations are expected in the week commencing Feb. 1st, the company said.

The company will have a six-strong board of non-executive directors including Osmond, chairman Michael Fairey, formerly deputy group chief executive of LLoyds TSB Group PLC., now Lloyds Banking Group PLC (LYG) and Denise Kingsmill, a former deputy chair of the Monopolies and Mergers Commission.

Press reports have suggested that Horizon will look at acquiring consumer companies. Companies identified as potential targets include troubled gaming operator Gala Coral Group, owned by buyout firms Cinven Group Ltd., Candover and Permira, and health club operator Esporta Ltd. A spokesman for Horizon

Credit Suisse will act as bookrunner for the IPO, with Numis Securities acting as co-lead manager, Horizon said.

Osmond made his fortune after buying, revamping and selling the U.K. Pizza Express chain, now owned by Gondola Group Ltd., controlled by Cinven Group Ltd. He also spearheaded the creation of pub chain Punch Taverns Group (PUB.LN).

-By Jessica Hodgson, Dow Jones Newswires; 0207-842-9373; jessica.hodgson@dowjones.com

Grafico Azioni Punch Taverns (LSE:PUB)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Punch Taverns (LSE:PUB)
Storico
Da Lug 2023 a Lug 2024