Accountancy Tutors in takeover deal

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THE TAKEOVER of Accountancy Tutors by EW Fact, announced yesterday, will produce a group training one in 10 of the country's 75,000 accountancy students.

Suresh Tanna, an EW Fact director, said it was unlikely that the pounds 11m deal would be referred to the Monopolies and Mergers Commission.

The takeover, financed by the issue of EW Fact shares valued at pounds 9.9m and a pounds 1.1m loan note, is conditional on the deal not being referred, as well as on shareholder approval.

EW Fact, based in High Holborn, London, is issuing 9,900,002 ordinary shares at pounds 1 each. There will be a vendor placing of 8,013,002 new ordinary shares and a cash placing of 760,826 additional new ordinary shares. The offer is fully underwritten by Credit Lyonnais Laing.

Accountancy Tutors will sell and lease back its Borough High Street building in south London. EW Fact had three freehold properties already and does not want to carry further property assets on the balance sheet.

There is also pounds 2.5m debt connected to the property, which will raise gearing.