Hargreaves Services raises £42m to fund UK acquisitions spree

Suzie Neuwirth
MINING group Hargreaves Services has successfully raised £42m from a share placement, in order to fund the expansion of its surface mining assets.

The placing was conducted through an accelerated bookbuild, with N+Singer and Jefferies Hoare Govett acting as joint bookrunners on the transaction.

Although the placing is planned to close at 4.30pm today, the offering was fully subscribed by yesterday lunchtime, it is understood.

The placement was split between existing shareholders and new investors from blue chip companies, mostly from the UK.

“The UK coal industry is undergoing a major restructuring and we believe that this provides Hargreaves with an exceptional opportunity to acquire surface coal mining assets,” said Tim Ross, chairman at Hargreaves.

“The fundraising which we have announced today will enable us to accelerate our strategy of expanding Hargreaves’ portfolio of UK surface mining assets and development pipeline through acquisition.”

Paul Jones, analyst at Panmure Gordon, told City A.M: “It sounds like a fairly sensible strategic move for the company.

“Hargreaves has a number of assets to choose from so it depends what they want to invest in.”



INTERNATIONAL corporate advisory and brokerage N+Singer is acting as the joint bookrunner with Jefferies Hoare Govett on Hargreaves Securities’ share placement.

Within N+Singer, the deal was headed up by Sandy Fraser and Richard Lindley on the corporate finance team and Nick Owen on the corporate broking side.

Fraser has more than 30 years’ corporate advisory experience, with a particular focus on mergers and acquisition (M&A) activities.

He previously worked at Phillips & Drew, which then became UBS Philipps & Drew Securities, before becoming a director of Guinness Mahon.

He joined Brewin Dolphin in 2002 and then, following the merger of N+1 Brewin and Singer Capital Markets in 2012, was appointed deputy head of the combined corporate finance practice.

Chartered accountant Lindley joined N+Singer from NM Rothschild & Sons where he had worked in investment banking.

He started his career in corporate finance at Williams de Broe, which then became part of Evolution Securities, moving to become a director of corporate finance at WH Ireland. He has significant expertise in both corporate finance and broking, having carried out a number of fundraisings, acquisitions, disposals and corporate restructurings.

Last but not least, Owen is a senior member of the corporate broking team and has worked on a number of successful fundraisings and flotations. He has extensive fund management experience and previously worked at both Scottish Widows and Halifax.