£9m share sale to fund Wynnstay deal
Agricultural group Wynnstay is set to sell off £9 million of shares after reaching an agreement to buy a Welsh farming society.
The Llansantffraid-based agricultural supplies group's bid for Carmarthen and Pumsaint Farmers Limited has been agreed, and is set to be completed on September 30.
And after looking at the cash resources Wynnstay, which also has a major operation on the edge of Shrewsbury, has available to complete the deal, it is now to raise the finance necessary for the deal with an equity sale.
The sale of 1.68 million shares is expected to generate £8.7 million for Wynnstay after expenses, which would use the cash both to complete the £7.2 million sale, and release working capital for the business.
It is expected to take place on the same day as the deal's completion, while the shares represent 9.11% of the company's newly enlarged size. They will be sold at a discount of 4,86% of yesterday's closing market price.
Chief executive Ken Greetham said: "I am delighted that our proposed acquisition of Carmarthen and Pumsaint Farmers has been approved by an overwhelming majority of members.
"The addition of the Society's seven stores in South West Wales represents an excellent fit with our existing Wynnstay Country Stores activities."
The deal marks a long run of new additions to Wynnstay.
