Marwyn Materials Limited (MMAT)

Marwyn Materials Limited (MMAT) – Marwyn Materials Limited joins AIM
 
Marwyn Materials Limited today announces the commencement of dealings in its Ordinary Shares on AIM. The chairman of the Company is Peter Tom CBE, formerly group chief executive and later chairman of Aggregate Industries plc. The Company’s chief executive is Simon Vivian, former chief executive of Hanson plc’s European Building Materials business and most recently chief executive of Mowlem plc.
 
The reason for admission is that Marwyn Materials was incorporated in August 2007 a vehicle to acquire controlling interests in building materials businesses, both listed and unquoted, in the UK, Europe and US and admission to AIM will enable them to do this.

The net proceeds of the Subscription will be used to meet general working capital requirements and to provide funds for the acquisition of minority stakes in UK and international quoted companies in accordance with the Company’s stated investment strategy.
 
The Directors believe that Admission to AIM will benefit Marwyn Materials as quoted shares may be an attractive form of consideration to vendors of potential acquisition targets and will potentially enable acquisitions to be financed by placings. They also feel it may be beneficial to the company by providing access to additional sources of finance to raise additional working capital. Equally they believe an admission to AIM will enhance the company’s reputation with acquisition targets, customers and suppliers by virtue of its status as a quoted company and they also believe that it will strengthen the company’s ability to retain and attract key staff with share incentive arrangements.
 
Peter Tom, chairman, said:
“As a senior management team we have extensive experience of the international building materials industry stretching back over 50 years. Having overseen the successful sales of our previous companies, and fulfilled our remaining contractual obligations, we are now free to get involved again in an industry we know well, which we enjoy and where we have generated significant value for our shareholders in the past.”
“We are interested in acquiring all types of building materials businesses and believe there is no shortage of opportunities to review. The smaller end of the market is still extremely fragmented and there are numerous private companies which want to realise value. As the market consolidates, we are also aware of several large players around the world with non-core assets which they wish to divest. There are particularly promising opportunities in the emerging markets of Europe.”