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Darwen has cut its share placing price from 40p to 30p.
Since returning from suspension on 20 June the shares in Darwen have fallen from 47p to 28p – at one point they fell to 22.5p. Because of the share price fall Darwen has cut the share price of the placing to finance the acquisition of bus maker Optare. It will still raise £16m gross but will have to issue many more shares now that the placing price is 30p instead of 40p.
The placing shares plus the 5.8m shares that will be issued as part of the consideration for Optare will equate to nearly 55% of the enlarged capital, against 47.4% originally.
Darwen chairman Roy Stanley, who is also boss of out of favour electric vehicles maker Tanfield, is subscribing for 2m shares.
Darwen will change its name to Optare when the acquisition goes through.
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