Richard Yerbury, managing director, said the moves would allow the company to pay off debt, fund the acquisitions and add to working capital. Skillion would improve cash flow, while the Chinese deal brought better growth prospects.
Existing 5p Embassy shares will be divided into 1p ordinary shares and in effect valueless non-voting 4p shares. The reorganisation has the backing of leading shareholders. These include the Wong brothers, who invested pounds 4.5m in Embassy when it was restructured in 1992.
Embassy made losses of pounds 454,000 before tax in the six months to September. Dealings in the new ordinary shares are expected to begin on 31 March.Reuse content