P&P Plc yesterday announced terms of its placing, and separately announced a return to its roots with creation of a new subsidiary, Principal Distribution Ltd, formed to service the Apple dealer network in the UK. The company, which gave preliminary details of its placing at the beginning of the week (CI No 910), has now put a price of 175 pence on the shares, valuing P&P at a round UKP50m. The placing will raise UKP15m all told, UKP3.1m of it going to the three founders, and the UKP11.9m balance representing new money to repay the company’s UKP5.5m debt and provide it with working capital and a fund for possible acquisitions. J Henry Schroder Wagg is the company’s merchant banker, and its broker is Hoare Govett. Meanwhile back in its Pete & Pam days, the company’s initial focus was on the Apple II market, and formation of the new subsidiary is intended to bring a firmer focus to its continuing Apple business. The new company will provide key third party solutions to the dealer network, which seems to mean that it will bring in and pick up products that connect to the Apple Mac and II, particularly network related ones. Principal has already signed distribution contracts with 3Com Corp, Sun’s TOPS company, Letraset, Supermac and Insignia. The new Principal will operate out of the group headquarters in Rossendale, Lancashire.
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