ABOUT US
Selkirk Group Plc is a newly incorporated company established with the primary objective of acquiring a company or business which the Directors believe is undervalued and providing it with its own quotation or listing or acquiring an existing public company and providing a highly incentivised management team with strategic direction. Many of these target companies may currently operate as subsidiaries of larger organisations, and an independent stock market quotation or listing could help unlock material value to create shareholder value. The Company is focused on acquiring a business which is headquartered in the United Kingdom. The Directors intend to raise equity and/or debt finance to fund the acquisition of a target company or business, as required, and focus on enhancing shareholder value over the long term.
The Company is primarily focused on the small and mid-cap market, specifically within the Consumer, Technology and digital media related sectors, including retail, software and digital sub-sectors. The Directors believe this underappreciated segment offers ample opportunity to identify a suitable business, whether it is a privately held company, a subsidiary of a larger listed company or an existing public company. The Company intends to prioritise innovation and strategic agility as essential drivers for unlocking hidden value and realising the full potential of target acquisitions.
The Company will look to achieve its strategy by taking an active approach to seeking an acquisition within the following parameters:
Geographic focus: Initially the Company’s focus will be acquiring a business headquartered in the United Kingdom.
Sector focus: The Company intends to focus its search in the Consumer, Technology and digital media related sectors, including retail, software and digital sub-sectors.
Target companies: The Company will seek to acquire a business with good market fundamentals and a strong track record but which the Directors believe is currently undervalued and would benefit from a stand-alone listing. It is likely that a target will have its own management, but new non-executive directors will be introduced to advise on strategy and governance.
Types of transaction and control of investments: It is anticipated that the Company will acquire all of, or a controlling-interest in, the ordinary equity of the target company. It is anticipated that ownership will be on a long-term basis. In the event that a target company is part of a larger company, it is possible that the vendor or its investors will have a shareholding in Selkirk following completion of the First Acquisition. If the Board believe it is necessary, appropriate controls will be put in place to ensure the Group's operations can be maintained independently from any vendor, including requiring the vendor to enter into a relationship agreement or similar.
Investment size: The Directors intend that initial funds raised pursuant to the Fundraising will be used for the purposes of funding operational expenses and to undertake due diligence on potential target acquisitions and to fund the First Acquisition. It is envisaged that the First Acquisition will be in a company with an enterprise value anticipated to be not less than £30 million and not more than £1 billion. An acquisition of this scale is likely to constitute a Reverse Takeover under the AIM Rules for Companies and completion of the First Acquisition would therefore be subject to the prior approval of Shareholders at a general meeting.
Nature of returns: It is anticipated that returns to Shareholders will be delivered through a combination of an appreciation in the Company’s share price and, if appropriate, annual dividends paid out of retained earnings (following completion of the First Acquisition) as well as return of cash to Shareholders following any disposal of any assets.