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Bailey to reverse into Markheath

Tom Stevenson
Wednesday 02 March 1994 00:02 GMT
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SHARES in Markheath were suspended yesterday at 6p as the heavily indebted property developer announced a reverse takeover by Thomas Bailey Investments, a South Wales property business, writes Tom Stevenson.

A complicated financial reconstruction dilutes existing shareholders to as little as 5 per cent of the enlarged equity and means that Stan Thomas, Bailey's largest investor, will end up with 30 per cent.

Mr Thomas is one of South Wales's most successful businessmen of recent years, having built up a food manufacturing business before selling out to Grand Metropolitan in 1988 for pounds 75m.

His reputation for market timing was enhanced in 1992 when he became Bailey's biggest investor by injecting equity funds at the bottom of the property market. The enlarged company plans to expand through portfolio acquisitions.

After the refinancing, which will raise pounds 24m by way of a placing and open offer at 33p, the company will change its name to TBI.

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