Information  X 
Enter a valid email address

Mazaran Leisure PLC (MZR)

  Print   

Tuesday 04 July, 2000

Mazaran Leisure PLC

Acquisition, etc

Mazaran Leisure PLC
4 July 2000

         Mazaran Leisure plc (the 'Company') - 
      
Exchange of contracts to acquire Springhealth Fitness Limited

On 6 June 2000 the Company announced that it was in talks
to acquire the business and certain assets of
Springhealth Leisure Limited, which operates a chain of
health and fitness operations principally in the North East 
and that the acquisition would constitute a reverse take-over
under the AIM Rules.

The Company is now pleased to announce that it has
agreed, subject to certain conditions, to acquire the
entire issued share capital of Springhealth Fitness
Limited ('Springhealth Fitness'), a company which has
acquired the health and fitness clubs business of
Springhealth Leisure Limited pursuant to a demerger of 
that company's business.  The Springhealth Fitness
business comprises eight mid-market health and fitness
clubs located in Hartlepool, Newcastle, Leicester,
Gateshead, South Shields, Sunderland and Teeside Park.

The consideration for the proposed acquisition comprises
£2.6 million in cash, the allotment of 20,000,000 new
Mazaran Leisure ordinary shares and the issue of £6.65
million of subordinated guaranteed loan stock.  A further
amount is payable in cash equal to the value of the stock
of Springhealth Fitness as at completion of the
acquisition which sum is expected to be not greater than
£130,000.  The Loan Stock will bear interest at 6 per
cent. per annum and is repayable in three annual
instalments beginning in August 2002.

The Company has made its intentions clear to expand by
both individual and corporate acquisition, with the aim
of becoming a major operator of health and fitness clubs
in the UK.  The acquisition of Springhealth Fitness
fulfils its criteria for achieving growth and increasing
critical mass in this market.  Both companies share the
same market position, offering value and service.  The
Springhealth Fitness clubs, being more mature and
profitable businesses, give the Company a stronger
financial position to develop further its presence in the
market.  The acquisition will result in the enlarged
group operating 14 clubs with an aggregate membership of
approximately 22,000 members.

The Company also announces that it proposes to launch a
placing and open offer to raise approximately £8 million
to finance the cash element of the consideration for the
acquisition and to provide additional working capital for
the enlarged group to enable it to exploit growth
opportunities.  The acquisition of Springhealth Fitness
is conditional, inter alia, upon the placing and open
offer being completed.

Full details of the proposed acquisition of Springhealth
Fitness and the proposed placing and open offer,
including details of the resolutions to be put to
shareholders to approve the proposals at an extraordinary
general meeting, will be set out in a circular to
shareholders which is expected to be despatched in the
near future.  It is expected that the suspension of
trading in the Company's ordinary shares will be lifted
on the release of such circular and that dealings will
recommence thereafter.

Enquiries to:

Richard Yerbury                    Tel: 07968 063 023
Chief Executive

Simon Rothschild                   Tel: 020 7256 5756
Millham Communications



                                                                                
                                                                                
                                       

a d v e r t i s e m e n t