VideoLogic Group Plc has finally won its day in the sun: its parent, Avesco Plc yesterday announced that it would spin off the multimedia technology developer, which claims to have a two-year lead over its competitors, by distributing shares to its holders on a one-for-one basis and conducting a placing and offer new VideoLogic preference shares to raise #21.5m. The net proceeds of the placing and offer will provide VideoLogic with #13m of working capital to fund its future growth. The remainder of the proceeds of the placing and offer will be used to repay VideoLogic’s outstanding debt. VideoLogic lost #5m in the year to March. The price per VideoLogic share – to be between 55 pence and 70 pence, will be established by a bookbuilding exercise by brokers S G Warburg & Co.
