Oakman Inns is set to appoint advisors at the start of next year as it looks to take a flexible approach to any eventual exit for its investors, MCA understands.
The group, which is seeking £8m through the issue of ordinary shares and 8.5% Oakman Bonds, is currently finalising a deal to buy out Downing’s ownership of seven Oakman-run sites. Oakman will also refinance the two sites it already owns as part of the Downing joint venture. These sites were recently valued at £38.9m and Downing, will be providing a loan for £24m.
The group has already raised £5.8m through its current share raise and as a consequence of strong trading and good returns on recent acquisitions has set the new share price at £3.50.
After 26 weeks of the current financial year, Oakman’s like-for-like sales have grown by 8.5%
On the long-term investment proposition, the group said: “The view of the board is that the best way to deliver the best returns for current and future shareholders, is to take a flexible view of the timing of any eventual exit. This flexibility should provide the opportunity for longer term wealth creation for new investors as well as providing a shorter term liquidity event for our patient early investors.
“As a result, it is the board’s intention to appoint Corporate advisors at the beginning of 2019 to help guide the board through the subsequent eighteen months. Regardless of the long term exit timing, there is a plan to create a liquidity event for shareholders timed for either the end of 2019 or the first half of 2020.”
Earlier this month Oakman appointed Dermot King, outgoing managing director of Butlins, as chief operating officer. At the time, founder and chief executive Peter Borg-Neal told MCA this would allow him to focus on “growth and our strategic options but also making sure I spend time in the pubs and keep my finger on the pulse”.
On the back of the latest fundraise, Borg-Neal told MCA: “Our excellent LFL growth, the runaway success of our recent openings and our consistent EBITDA growth has inspired two key decisions - to raise more growth capital and to strengthen our management team.”
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Oakman Inns is set to appoint advisors at the start of next year as it looks to take a flexible approach to any eventual exit for its investors, MCA understands. The group is currently seeking £8m through the issue of ordinary shares and 8.5% Oakman Bonds and is currently finalising a deal to buy out Downing’s ownership of seven Oakman-run sites. Oakman will also refinance the two sites it already owns as part of the Downing joint venture. These sites were recently valued at £38.9m and Downing will be providing a loan for £24m. The group has already raised £5.8m through its current share raise and as a consequence of strong trading and good returns on recent acquisitions has set the new share price at £3.50. On the long-term investment proposition, the group said: “The view of the board is that the best way to deliver the best returns for current and future shareholders, is to take a flexible view of the timing of any eventual exit. This flexibility should provide the opportunity for longer term wealth creation for new investors as well as providing a shorter term liquidity event for our patient early investors. As a result, it is the board’s intention to appoint corporate advisors at the beginning of 2019 to help guide the board through the subsequent eighteen months. Regardless of the long term exit timing, there is a plan to create a liquidity event for shareholders timed for either the end of 2019 or the first half of 2020.”
