Bglobal says this be will be financed partly through a £6.5m placing and it is set to raise another £1.5m through an open offer to shareholders.

The price of both the placing and the open offer is 38p per share, compared to the closing price of 34p yesterday (25 May).

The placing is now subject to shareholder approval.

Bglobal will make an initial payment of £5.3m for Utiligroup consisting of £4.3m in cash and £1m in ordinary shares at a price of 43 pence per share and a performance consideration of £7.5m with £4.125m in cash and £3.375m in shares, which will be payable dependent on the trading performance of Utiligroup in the year to 31 Match 2011.

Story provided by Business Financial Newswire