Results of Placing

RNS Number : 5759C

Hargreaves Services PLC

17 April 2013

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN

For immediate release                                                                                                      17 April 2013

Hargreaves Services plc

("Hargreaves" or the "Company")

Results of Placing

Pursuant to the announcement released earlier today, Hargreaves (AIM:HSP) is pleased to announce that it has successfully placed a total of 5,460,080 new ordinary shares of 10 pence each (the "Placing Shares") at a price of 775 pence per Placing Share with certain new and existing institutional investors, raising total gross proceeds of approximately £42.3 million. The Placing Shares being issued represent approximately 16.6 per cent. of the expected enlarged issued share capital of the Company. It is intended that the net proceeds of approximately £40.7 million will be used by Hargreaves to expand its portfolio of surface mining assets.

As previously announced this morning Hargreaves has agreed with N+1 Singer Advisory LLP ("N+1 Singer") and Jefferies International Limited ("Jefferies") to place 2,730,040 Placing Shares, (the "First Placing Shares") with certain new and existing institutional investors on a non pre-emptive basis to raise £21.15 million of gross proceeds (the "First Placing"). Application has been made for the First Placing Shares to be admitted to trading on AIM and it is expected that admission will take place at 8.00 a.m. on 22 April 2013 ("First Admission").

In addition to the First Placing, Hargreaves has placed a further 2,730,040 Placing Shares (the "Second Placing Shares") at the Placing Price with new and existing institutional investors on a non pre-emptive basis to raise an additional £21.15 million of gross proceeds (the "Second Placing"), (together with the First Placing the "Placing"). The Second Placing is conditional, inter alia, on shareholder approval at a general meeting to be held on 7 May 2013 (the "General Meeting"). Application will be made for the Second Placing Shares to be admitted to trading on AIM following the approval of the necessary resolution at the General Meeting and admission of the Second Placing Shares is expected to take place at 8.00 a.m. on 8 May 2013 ("Second Admission").

A circular to shareholders is expected to be posted shortly, including notice of the General Meeting and details of the resolution to be proposed at the General Meeting.

Further details of the First Placing and Second Placing are set out in the announcement released earlier today.

N+1 Singer is acting as Nominated Adviser, joint broker and joint bookrunner in relation to the Placing. Jefferies is acting as joint broker and joint bookrunner in relation to the Placing.

Following First Admission, which is expected to take place on 22 April 2013, it is expected that Hargreaves will have 30,231,513 Ordinary Shares in issue. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

For further details:

Hargreaves Services plc	Tel: [phone]
Gordon Banham, Group Chief Executive
Iain Cockburn, Group Finance Director
Buchanan	Tel: [phone]
Mark Court / Fiona Henson / Sophie Cowles
N+1 Singer (Nominated Adviser, joint broker and joint bookrunner)	Tel: [phone]
Sandy Fraser / Nick Owen / Richard Lindley
Jefferies International Limited (joint broker and joint bookrunner)	Tel: [phone]
Sara Hale / Harry Nicholas

Important Notice

This announcement has been issued by, and is the sole responsibility of, the Company. This announcement is for information only and does not constitute an offer or invitation to underwrite, subscribe for or otherwise acquire or dispose of any securities or investment advice in any jurisdiction in which such an offer or solicitation is unlawful, including without limitation, the United States, the United Kingdom, Australia, Canada, the Republic of South Africa or Japan.

No prospectus or admission document will be made available in connection with the matters contained in this announcement.

Jefferies International Limited ("Jefferies") and Nplus1 Singer Advisor LLP ("N+1 Singer"), each of which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, are acting for the Company and for no-one else in relation to the Placing, and will not be responsible to any other person for providing the protections afforded to their respective clients nor for providing advice in connection with the matters contained in this announcement. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Jefferies or N+1 Singer, or by any of their respective affiliates or agents, as to or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

The distribution of this announcement and the placing of the Placing Shares as set out in this announcement may be restricted by law in certain jurisdictions. No action has been taken by the Company or Jefferies or N+1 Singer that would permit an offering of the Placing Shares or possession or distribution of this announcement or any other offering or publicity material relating to the Placing Shares in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required by the Company, Jefferies and N+1 Singer to inform themselves about, and to observe, such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement is directed only at persons (i) having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) who are high net worth entities falling within Article 49(2)(a) to (d) of the Order, and other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This announcement must not be acted on or relied on in the United Kingdom by persons who are not relevant persons.

In member states of the European Economic Area ("EEA"), this announcement is only addressed to and directed at persons who are 'qualified investors' within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the Relevant Member State) and includes any relevant implementing measure in each Relevant Member State) (the "Prospectus Directive") ("Qualified Investors").

This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia).

This announcement does not constitute or form part of an offer of, or solicitation to purchase or subscribe for, securities in the United States. The Placing Shares may not be offered, sold or transferred, directly or indirectly, within the United States absent registration under the US Securities Act of 1933 (the "Securities Act") or an exemption therefrom. The Company has not registered and does not intend to register any of the Placing Shares under the Securities Act. No money, securities or other consideration is being solicited from any person inside the United States and, if sent in response to the information herein, will not be accepted. The Placing Shares will not be offered or sold to the public in the United States.

Any indication in this announcement of the price at which Ordinary Shares have been bought or sold in the past cannot be relied upon as a guide to future performance. No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that the earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

The price of Ordinary Shares and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the Placing Shares.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Forward-Looking Statements

Certain statements included in this announcement contain forward-looking information concerning the Company's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the sectors or markets in which the Company operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Nothing in this announcement should be construed as a profit forecast and no part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in the Company, and must not be relied upon in any way in connection with any investment decision. Any forward-looking statements made herein by or on behalf of the Company speak only as of the date they are made. Except as required by the FCA, AIM Rules or applicable law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

 

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