It’s full steam ahead for The Agency Group Australia’s (ASX:AU1) long-awaited acquisition of high -growth eastern states real estate agency Top Level Real Estate with the lodging of a Notice of Meeting for shareholders today.
The shareholder meeting – to approve the acquisition of Top Level, trading as The Agency on the east coast, and the raising of up to $8.4 million – will take place at 10am on November 15 at The Agency offices in Perth.
Top Level acquisition – if it eventuates – will see the addition to The Agency of a highly experienced east coast real estate sales and project marketing team, significant property management portfolio and extensive sales pipe-line.
If the deal goes ahead, the company will have a strong footprint in the Perth and Sydney residential property markets, with around 300 sales reps across offices in Perth, Sydney, Melbourne and the Gold Coast and plans to expand into Canberra and further expand its Western Australian operations.
It will also have over 4100 properties under management, listings of over 1100 and a mortgage book of over A$1.1 billion.
The $8.4 million capital raising provides a significant boost to The Agency’s balance sheet, providing the funds to progress the Top Level acquisition and expand Sell Lease Property nationally.
The Agency originally entered into an option agreement early last year to acquire the issued capital of Top Level before an amended and restated option agreement was exercised last month.
In addition, the Company is also undertaking a 1-for-30 share consolidation providing a tighter capital structure and a $5 million reduction in Top Level debt via a debt-to-equity conversion.
To reward shareholders for their continued loyalty and ongoing support, The Agency will also make a bonus issue to all shareholders of over 13.6 million new shares following consolidation of the company’s issued capital on a 30:1 basis. No
Shareholder approval is required for the bonus issue.
Shares in The Agency closed today at 1.2c