Chip distributor Electron House Plc now has final agreement on its merger with subsidiaries of Elektrowatt AG, and plans a placing and open offer of 6.9m new shares at 165 pence each against a price in the market before the announcement of 181 pence. Under the open offer, shareholders will be able to subscribe for the new shares at the rate of one for every four held, or 17.25 ordinary shares for every ú100 nominal of 7.5% preference shares. As part of the merger, the group will issue some 23.6m new shares to Elektrowatt at 181 pence each, giving the Swiss company a 42.2% stake in the enlarged company, which is to change its name to Eurodis Electron. The new firm will have total annual sales in excess of ú300m. For the 1994-95 fiscal year, Electron House saw pre-tax profits 45% up at ú5.9m.
