Hancock & Gore Ltd (ASX:HNG) reached an principle agreement to acquire an additional 40.3% in Mountcastle Pty Ltd from James Baldwin and his associated entity for AUD 14.8 million on September 4, 2023. Hancock & Gore Ltd (ASX:HNG) entered into a definitive sale and purchase agreement to acquire an additional 40.3% in Mountcastle Pty Ltd from James Baldwin and his associated entity on September 26, 2023. The consideration for the 40.3% Mountcastle equity acquisition comprises a cash component of AUD 5.0 million upon completion; issuance of 15 million H&G shares at 35 cents per share; transfer of H&G?s unencumbered equity in Hyde Rd Trust to the Shareholder Partner requiring a loan repayment to the Trust?s lender of AUD 3.47 million by March 31, 2024 and interest; and a deferred cash consideration of AUD 5.0 million payable 1 year after completion. H&G will fund the acquisition using its existing cash on balance sheet. If the acquisition proceeds, H&G will hold 89.8% of Mountcastle. Remaining shareholders in Mountcastle largely comprise management executives and H&G is exploring opportunities to create further alignment through eventual 100% ownership. Mountcastle standalone reported record FY23 (June year-end) revenue of AUD 53 million and EBITDA of AUD 10.5 million. The acquisition is subject to entering into definitive legal agreements, lender approvals, ASX consultations and other commercial conditions precedent. H&G is aiming to complete the acquisition by November 1, 2023. Successful completion of the acquisition will significantly enhance H&G's financial performance and growth prospects, contributing to cash profit growth and future dividends.
Hancock & Gore Ltd (ASX:HNG) completed the acquisition of additional 40.3% in Mountcastle Pty Ltd from James Baldwin and his associated entity on November 3, 2023. Eugene Fung of Thomson Geer acted as legal advisor to Hancock & Gore Ltd.