June 5 (Reuters) - UK mail delivery firm DX Group agreed to acquire John Menzies’ distribution arm through a reverse takeover on Monday, securing backing from its largest investors after terms of the deal were revised.
DX has offered 40 million pounds in cash and intends to issue new ordinary shares representing 65 percent of its issued share capital as enlarged by the transaction, the firms said.
Gatemore Capital Management, which holds a 21.3 percent stake in DX, had previously opposed the proposal but said it had now entered into irrevocable undertakings to vote in favour of the revised deal.
The previous terms proposed DX paying about 60 million pounds cash and issuing new shares to Menzies equalling 80 percent of DX’s share capital.
Menzies also said it intended to raise gross proceeds of about 30 million pounds by way of a placing of new shares largely with institutional investors, adding that it would retain the proceeds. (Reporting by Esha Vaish in Bengaluru and Maiya Keidan in London; editing by Jason Neely)