audioboom pays part of Adelicious in shares and also does a £3.0M placing. why both?
the odd bit for me. Audioboom (AIM) is buying Adelicious, a podcast advertising business, for up to £10.0M. £4.5M initial, up to £3.0M deferred and up to £2.5M further contingent. the initial part is 60% cash and 40% shares, and at the same time there is a £3.0M placing to part-fund it. so they hand shares to the sellers and also sell shares to new money. i don't know why you would do both. is the 40% in shares there to keep the sellers around, with the placing just covering the cash? or is the placing the real story and the deal is the excuse? it's not a merger arb thing, the target is private so there is no spread to look at. i couldn't find how the placing was priced against the shares going to the sellers. if anyone knows where that is disclosed, or thinks I'm reading it wrong, say so.
