Friday May 16, 08:12 AM
Block Shield to buy Mu-Gahat; to place 12.58 mln shares at 33p per share
LONDON (Thomson Financial) - Block Shield Corp. Plc. said it has conditionally agreed to acquire custom RFID (RFDL.PK - news) and
gaming technology group Mu-Gahat Holdings Inc. in an all-share deal, adding it plans to raise 4.15 million pounds before expenses by placing 12.58 million shares at 33 pence each.
The electronic components provider said the 9.77 million pounds payment for Mu-Gahat will be satisfied by the issue of 29.61 million Block Shield shares, which represents 39 percent of the company's enlarged share capital.
Edwin Oh, currently a director of Mu-Gahat, will become chief executive officer of Block Shield on completion of the acquisition.
The company said it expects to report lower revenues and a wider operating loss for the year to Feb. 29 2008. It said while all its major contracts remain in place, order flow from them has decreased and newly secured contracts have not yet increased to a level sufficient to compensate for the decline in orders from embedded clients.
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