Franchise Brands PLC Potential Acquisition and Temporary Suspension (2211A)
March 22 2017 - 9:04AM
UK Regulatory
TIDMFRAN
RNS Number : 2211A
Franchise Brands PLC
22 March 2017
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR")
22 March 2017
FRANCHISE BRANDS PLC
("Franchise Brands", the "Group", or the "Company")
Statement re share price movement and suspension of share
trading on AIM
Franchise Brands, a multi-brand international franchisor, notes
the recent price movement of its shares on AIM and confirms that
the Company is in advanced stages regarding a potential acquisition
which would constitute a reverse takeover under the AIM Rules for
Companies. Whilst the Company has entered into an exclusive
agreement regarding the potential acquisition, any transaction
remains subject to a number of factors, including completing due
diligence and negotiations to the Company's satisfaction, and, as
such, there can be no certainty that a final binding agreement will
be reached.
The potential acquisition would be consistent with the Company's
strategy, as outlined at the time of its recent IPO, to pursue
selective acquisitions of complementary franchise businesses that
could benefit from the Company's central services and also the
experience of the Board and management team in developing franchise
businesses.
Should the proposed acquisition proceed, as it would constitute
a reverse takeover under rule 14 of the AIM Rules for Companies,
shareholder approval will be required. As such, a further
announcement with full details of the transaction would be issued
at the appropriate time once binding contracts are entered into and
an admission document published and sent to shareholders with a
notice of general meeting. In accordance with rule 14 of the AIM
Rules for Companies, the Company's shares will be suspended from
trading on AIM with immediate effect until either publication of
the admission document or announcement of the transaction not
proceeding.
The Company is also in the process of finalising its audited
financial results for the year to 31 December 2016, which are
expected to be announced shortly.
Enquiries:
Franchise Brands plc 0800 012 6462
Stephen Hemsley, Executive Chairman
Julia Choudhury, Corporate Development Director
MHP Communications +44 (0) 20 3128 8100
(Financial PR) franchisebrands@mhpc.com
Katie Hunt / Hannah Winter
Allenby Capital Limited +44 (0) 20 3328 5656
(Nominated Adviser and Joint Broker)
Jeremy Porter/ James Thomas / Liz Kirchner
Dowgate Capital Stockbrokers
(Joint Broker)
James Serjeant +44 (0)1293 517744
Further information on Franchise Brands:
Franchise Brands is a group of international multi-brand
franchisors with a combined network of over 400 franchisees in 12
countries, but predominantly in the UK. Prior to the acquisition of
Barking Mad, the Group's two main brands were ChipsAway, a mobile
car paintwork repair specialist and Ovenclean, a mobile domestic
oven cleaning business. These businesses deliver services to
individuals of a similar socio-economic group through the Group's
franchisees. In October 2016, Franchise Brands acquired Barking Mad
Ltd, a pioneer in the market for professionally-organised dog
sitting services with 75 franchised territories across the UK.
Founded in September 2008 by Stephen Hemsley (Executive
Chairman) and Nigel Wray (Non-Executive Director), the Group's
principal shareholders, Franchise Brands has a highly experienced
management team and Board with extensive expertise in franchising
(gained through their notable involvement with Domino's Pizza),
operating and growing profitable businesses and investigating
acquisition targets.
Franchise Brands has developed a highly professional central
services platform including marketing, franchise recruitment and
support services, which enable it to support the acquisition of new
franchise brands without significantly increasing its central
overhead.
The Board has a clear strategy to build the Group by the
selective, earnings enhancing acquisition of high quality franchise
businesses that can benefit from its central services and also the
experience of the Board and management team in developing franchise
businesses. Selective acquisitions are intended to supplement
organic growth derived from increasing the number of franchisees in
the existing brands and supporting existing franchisees who wish to
grow their businesses.
Franchise Brands was admitted to AIM in August 2016 (ticker
code: FRAN.L).
www.franchisebrands.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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