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Case study

ico-technology.pngSatellite Solutions Worldwide Group Plc

Location: United Kingdom

Deal Type: Reverse Takeover listed on the Standard Segment of the Main Market as a cash shell in December 2014 raising £3.2m and raised a further £2.3m in connection with the RTO. The enlarged group admitted to trading with a market capitalisation of approximately £13.9m.

Deal Size: £13.9m

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Strand Hanson acted as Financial & Nominated Adviser on the reverse takeover of Cleeve Capital plc (“Cleeve”) by Satellite Solutions Worldwide Limited (“SSW”) (the “RTO”) which led to the admission to trading on AIM in mid-May 2015 of the enlarged group, under the name Satellite Solutions Worldwide Group plc.  Cleeve had listed on the Standard Segment of the Main Market as a cash shell in December 2014 raising £3.2m and raised a further £2.3m in connection with the RTO. The enlarged group admitted to trading with a market capitalisation of approximately £13.9m.

SSW provides satellite broadband services in the UK and Europe and has demonstrated organic growth of 30%+. The satellite broadband sector is highly fragmented and SSW intends to use the IPO proceeds to continue to grow organically but also consolidate the sector across Europe.

We believe this is one of the first Standard Segment listed shells to complete a RTO and transfer to AIM.  Standard Segment listed shells have a number of advantages over AIM shells (known as investing companies), in particular:

  • The costs of listing a shell on the Standard Segment are substantially lower than on AIM;
  • Greater flexibility over investment policy, and less onerous regulatory environment; and
  • No requirement to seek shareholder approval for a reverse takeover.

An AIM Admission Document is still required in connection with the RTO, setting out details of the target, financial history and usual suite of disclosures.

The AIM Admission Document for the transaction can be downloaded here: http://www.satellitesolutionsworldwide-ir.com/archive/Admission-Document.pdf