Produce Investments PLC completes acquisition of Jersey Royal Company

Produce Investments Ltd has acquired the entire issued share capital of The Jersey Royal Company Ltd for a total of £11.0m in cash and the issue of 1.6m shares of 1 pence each, which amounts to about £4.0m at the Company's closing middle market price on 15 May 2014.

The acquisition, from JR Property Holdings Ltd, is being made on a cash free/debt free basis.

The Cash Consideration will be funded through the Placing, existing cash resources and the increase of its existing banking facility with HSBC.

Produce Investments has raised gross £6.0m through the issue of 2.7m new shares at 220 pence a share by way of a significantly oversubscribed placing arranged by Shore Capital with new and existing institutional investors.

The Placing Price is at a discount of about 12.9% to the closing middle market price on 15 May 2014, being the last dealing day prior to the publication of this announcement.

Net proceeds of the placing are expected to be about £5.7m and will be used to fund a portion of the cash consideration for the acquisition and provide additional working capital for the Company.

As part of the Acquisition, the Company has also entered into a put and call option to acquire Peacock Farm from JR Property Holdings Limited within 3 years for a total fixed consideration of £6.35 million.

At 8:18am: [LON:PIL] Produce Investments PLC share price was 0p at 252.5p