More Acquisitions agrees Megasteel reverse takeover listing

More Acquisitions plc has agreed to acquire 100% of the issued share capital of Megasteel Limited, a UK distributor of steel for the pre stressing and post tensioning of concrete products.

The transaction will be valued at £49.5-63 million ($53.5-68m). It remains subject, amongst other things, to completion of customary due diligence.

The proposed acquisition will constitute a reverse takeover under the Listing Rules. More Acquisitions intends to publish a prospectus of the enlarged company, and to apply to have its ordinary shares admitted to the Official List and to trading on the London Stock Exchange’s Main Market. Megasteel will thus become a publicly traded company without going through an initial public offering.

“We have built Megasteel over the last 30 years to be one of the biggest suppliers in the UK of prestressing wire and strand, a product used in almost every construction project in the country, and we have been considering a listing of the business for many years. We are pleased to be working with More Acquisitions as the vehicle that will enable us to do this,” Megasteel chief executive Nigel Roberts says in a note seen by Kallanish.

In its financial year ended 31 October 2021, Megasteel made audited pre-tax profits of £3m on turnover of £19.7m.

Megasteel also operates a sub-contract engineering business based in Malmesbury, Wiltshire, having acquired Sweetnam and Bradley Limited in 2019. Sweetnam and Bradley support several clients including Renishaw plc, Siemens plc, Rotork plc and the London Underground.

Adam Smith Poland