News Column

Wesminster To Raise GBP1.25 Million In Placing To Fund Expansion

August 4, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Fire protection and safety products maker Westminster Group PLC Monday said it will issue 3.13 million new shares in a placing with institutional investors to raise GBP1.25 million before expenses, funds it said it will primarily use for the ongoing expansion of its managed services division.

The group said the placing shares will be priced at 40 pence per share, and represent roughly 6% of the enlarged issued share capital of the company.

Westminster shares were trading at 45.00 pence Monday afternoon, down 2.2%.

Westminster said although it will primarily use the proceeds to fund ongoing expansion, it will also use it as a precautionary measure to mitigate any potential disruption to its cash flows should the current Ebola outbreak in West Africa impact air traffic in the region.

"Whilst serious disruption is currently not expected the board considers this placing to be a prudent measure in the best interests of the company and its shareholders," the company said in a statement.

Westminster said customer interest in its managed services division continues to grow with several sale prospects now reaching advanced stages.

"The majority of the company's near term pipeline of business relates to regions which are geographically very distant from the current Ebola outbreak and are therefore unlikely to be affected by it," it said.

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Source: Alliance News

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