Porta exercises right to buy another chunk of Newgate
Porta Communications
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09:29 03/09/19
Porta Communications announced on Friday that, further to its announcement on 7 December 2016, it has increased its equity ownership in Newgate Communications Australia to 62.29%.
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The AIM-traded firm added that, under the terms of the shareholders' agreement between Porta and its fellow shareholders of Newgate Australia, it has the right to acquire an additional 4.428% interest in Newgate in 2017 and then in each of the subsequent four years.
“The subsequent acquisitions from the Australian Newgate Shareholders will be on a pro rata basis, or as otherwise agreed between the Australian Newgate Shareholders, and notified to Porta in accordance with the Australian Shareholder Agreement,” Porta’s board explained.
“The consideration for each additional interest acquired by Porta in Newgate Australia will be satisfied by the issue of ordinary shares of 1p each in the capital of the company.”
As a result, Porta has acquired 4.428% of Newgate Australia, increasing Porta's interest from 57.86% to 62.29%.
The consideration for the additional interest was £0.28m, which was being satisfied by the issue of 8,091,453 ordinary shares at a price of 3.428p per ordinary share.
Porta said the consideration shares were subject to a lock-in agreement which provided for a six-month lock-in period and a further six-month orderly market period.