Update on the offer of ordinary shares in Blue Diamond Limited and announcement of the disposal of David Dumosch Limited
Following the open offer of 463,481 ordinary shares in Blue Diamond Ltd, which closed on 16th November 2016, the Board reports a total of 188,849 new shares, or 41% of the shares offered, were accepted by existing shareholders. Total gross proceeds were £1,794,065.50.
All shareholders who applied for excess shares will receive those shares.
New share certificates will be sent in the post to those shareholders who applied for new shares.
The Board is happy with this outcome and the proceeds will be used to take advantage of opportunities to acquire new garden centres and to invest in the redevelopment and refurbishment of the Company's existing centres.
As indicated by Chairman Simon Burke, over the coming months potential new shareholders will be offered the opportunity to buy up to a further 274,632 shares, being the total remaining available. These will be offered at not less than £9.50 per share. It will remain open to existing shareholders to buy additional shares at the same price as they are being offered to new shareholders.
In addition, the Board is pleased to announce that the Company has completed the sale of its 45% shareholding in David Dumosch Ltd, the Jersey-based supplier of animal feed, chemicals, fertiliser and related products to commercial farmers and growers in Jersey. Blue Diamond Ltd has owned the stake since 1983 and is delighted to have sold its stake to Agrii, the UK specialist supplier to the farming industry, who has worked with David Dumosch Ltd for many years and has agreed to keep on all the staff.
Proceeds from the sale are expected to be just under £0.5m and a similar exceptional gain on disposal will be recognised in the 2016 financial statements. This sale is part of Blue Diamond's strategy to focus on its core business of garden centres, and, like the open offer, the proceeds will be used to acquire new garden centres and to invest in the redevelopment and refurbishment of the Company's existing centres.