StockMarketWire.com - Fulham Shore has conditionally agreed to acquire 99% of the issued share capital of Rocca Limited, the owner of the Franco Manca restaurant group.

Franco Manca specialises in Neapolitan sourdough pizza and currently has ten restaurants in London. One of these restaurants, on Tottenham Court Road, is currently operated by Fulham Shore under a franchise agreement.

The aggregate consideration for the acquisition is approximately £27.5m, to be satisfied as to approximately £6.2 million in cash and the balance of approximately £21.3m by the issue of 193,457,975 new Ordinary Shares at 11p per share. The board also announced that the company has conditionally raised a total of £4.75m via a placing and subscription of new ordinary shares at 11p per share. The acquisition and fundraising are subject to shareholder approval.

Fulham Shore also announced that it has agreed new credit facilities with its bank, HSBC. The new credit facilities, for which covenants have been agreed, provide a revolving credit facility of £6.0m and an overdraft facility of £0.5m to the company for various purposes including:

- refinancing the outstanding loan facility acquired with Kefi Limited of £860,000;

- investment in the company's existing restaurants;

- funding the expansion of The Real Greek restaurants

- funding future acquisitions and expansion of any acquired brands

The revolving credit facility is for a fixed term of 4 years and attracts an interest rate margin of between 1.5% and 2.5% over LIBOR on amounts drawn down.


At 8:45am: [LON:FUL] The Fulham Shore Plc Ord Gbp0.01 share price was +0.25p at 13.5p



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