Aldgate Capital Plc is set to embark on its bullish strategy of acquiring in the low stake-high volume gaming market in the UK and Europe. The company is about to make its first purchases; H.J.M Caterers and E&J Hall Investments, for £25 million.

The purchase constitutes a reverse takeover under AIM rules and as a result Aldgate will be renamed Praesepe Plc.

The sum is to comprise £22 million cash and £3 million of shares, Aldgate is set to raise £16.7 million with an AIM placing of 22 million shares at 22p. The remainder of the sum will be settled with existing cash resources and a new debt facility of some £3.8 million.

The acquisition adds 31 adult gaming centres in the UK to Aldgate’s books. Despite the smoking ban and Gambling Act causing the targets’ revenues to fall, Aldgate Capital said it expects strong cash flow and predicts full year revenues of £11 million and EBITDA of £2.9 million.