Molten Ventures PLC (LON:GROW) has expanded its portfolio with the acquisition of Forward Partners Group PLC, a transaction valued at £41.4 million. The deal, which is an all-stock agreement, allows Forward Partners’ shareholders to exchange their holdings for new Molten shares at a ratio of one for nine, representing a 7.3% discount based on the closing prices from Friday. As a result of the acquisition, Molten shareholders will hold approximately 91% of the enlarged entity.
In conjunction with the acquisition, Molten Ventures is set to increase its financial muscle by raising an additional £50 million. This capital raise will be executed at a price of 270p per share, with significant investment pledges from BlackRock and the British Business Bank, who have committed up to £25 million and £10 million, respectively. Additionally, Molten is targeting just under £3 million in extra funds by offering up to 1.1 million new shares to the market at the same price point.
The strategic acquisition brings key assets into Molten’s fold, including innovative companies like Bea Fertility and Gravity Sketch, as well as Robin AI. Moreover, it encompasses successful exits such as Skimlinks, Airsupply, and Cazoo, enhancing Molten's position in what CEO Martin Davis describes as a buyer's market. This move is expected to provide Molten Ventures with a competitive edge in supporting its portfolio companies.
To further its financial strategy, Molten Ventures is pursuing additional funding through placements on the London Stock Exchange and Euronext Dublin. The firm has garnered major investments from shareholders such as Blackrock (NYSE:BLK) and British Patient Capital, with retail investors also being given the opportunity to participate through PrimaryBid. These strategic financial maneuvers are projected to boost Molten’s liquidity to over £100 million, taking into account their revolving credit facilities with J.P. Morgan Chase Bank and HSBC (LON:HSBA).
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