(Alliance News) - Molten Ventures PLC on Monday said it agreed an all-share deal to acquire Forward Partners Group PLC, backed by the latter's largest shareholder asset manager BlackRock Inc.

Tech-focused investor Molten said that under the terms of the acquisition, Forward Partners shareholders will receive one new Molten share for each nine shares in Forward Partners they hold.

In turn, Molten's 279.6 pence closing price on Friday values Forward Partners at GBP41.4 million. Molten shareholders will own just over 91% of the enlarged firm.

Molten Ventures shares were 0.8% lower to 277.40p each on Monday morning in London, while Forward Partners shares fell 6.0% to 31.50p each.

Forward Partners, which backs early stage technology businesses, has been listed for around two-and-a-half years, having made its AIM debut in July 2021.

It listed at a GBP134.6 million market capitalisation, though its value has shrunk since, sitting at GBP45.1 million as of the London equities close on Friday.

The acquisition sum is a 7.3% discount to Forward's Friday closing value.

Molten said the acquisition fits its "investment objective and policy". In addition, Molten will conduct an equity raise of GBP50 million, at a price of 270p per share, a 3.4% discount to its Friday closing price.

As part of the fundraise, Molten will receive backing from funds and accounts managed by BlackRock, the largest shareholder in Forward Partners, to the tune of up to GBP25 million.

Further, Molten Ventures announced an offer for up to 1.1 million new shares at 270p each to raise up to just under GBP3.0 million.

British Business Bank, owned by the UK government, has agreed to subscribe to GBP10 million worth of Molten shares, meanwhile.

By Tom Budszus, Alliance News slot editor

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