Coventry Group Limited (ASX: CYG), a company from the industrial sector into the business of distributing and marketing industrial products, has announced the completion of the acquisition of Nubco Proprietary Limited (Nubco) post which its share price zoomed up by 4.878%. As per the agreement, Coventry Group will acquire all the shares of Nubco worth $36 million. The breakdown of the amount will consist of $34.2 million in cash and remaining $1.8 million in the form of Coventry shares.
Nubco is the largest independent supplier of industrial and hardware supplies in Tasmania which generated a sales revenue of $39.4 million and EBITDA of $6 million from a network of seven stores in FY2018.
The company has planned to raise approximately $27.6 million before cost and debt through the existing facility of the company to fund the acquisition. The acquisition’s funding involves pro-rata accelerated non-renounceable entitlement offer of 1 for 1.37. Each share will be issued at $0.75 per share.
There were few more updates on the same date on 1 March 2019, which included the change of Director’s interest holding as well as about the substantial ownership changes.
Change of Director’s Interest Holding
James Scott Charles Todd had an indirect interest in the securities held by Tamkin Pty Ltd at Tamkin Superannuation Fund. Earlier, he had 67,486 fully paid shares held by Tamkin Pty Ltd. However, on 28 February 2019, he acquired another 49,260 ordinary fully paid shares held at $0.75 per share. With this change, he has 116,746 ordinary fully paid shares held by Tamkin Pty Ltd.
Earlier, Robert James Bulluss held 115,922 fully paid ordinary shares and 178,718 Performance Rights. He acquired 134,077 ordinary fully paid shares of the company at $0.75 per share. With this change on 28 February 2019, he now holds 249,999 ordinary fully paid shares and 178,718 Performance Rights.
Andrew William Nisbet has a relevant interest in securities held by AndEllie Pty Ltd ATF Nisbet Superannuation Fund. Before the change, he had 69,300 ordinary fully paid shares held by AndEllie Pty Ltd. On 28 February 2019, he acquired another 50,585 ordinary fully paid shares at $0.75 per share. With this change, he holds 119,885 ordinary fully paid shares.
Earlier, Neil George Cathie, held 226,396 fully paid ordinary shares held by Romney Lodge Pty Ltd, 70,400 ordinary fully paid shares held by Romney Corporate Advisory Pty Ltd and 116,238 ordinary fully paid shares held by Neil George Cathie. On 28 February 2019, he acquired 165,253 ordinary fully paid shares held by Romney Lodge Pty Ltd, 51,387 ordinary fully paid shares held by Romney Corporate Advisory Pty Ltd and another 84,846 ordinary fully paid shares held by Neil George Cathie at $0.75 per share.
At present, after the changes, he has 391,649 ordinary fully paid shares held by Romney Lodge Pty Ltd, 121,787 ordinary fully paid shares held by Romney Corporate Advisory Pty Ltd, and 201,084 ordinary fully paid shares held by Neil George Cathie.
Substantial ownership changes:
Lanyon Asset Management Pty Limited has become the substantial holder of the ordinary shares of the company where it holds 5,614,615 of securities with 6.4% voting power. Also, Intrepid Capital Management, Inc ceases to exist as company’s substantial holder.
In the last six months, the stock has generated a negative return of 31.16%. However, its YTD results are positive at 1.49%.
The acquisition of Nubco along with the substantial interest received by the directors might have given confidence to the investors. As a result, the share price zoomed up by 4.878%. The closing price of the stock was A$0.860. The market capitalization is A$57.57 million with approximately 70.2 million outstanding shares.
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