Castle Street suspended as reverse takeover revealed

Trading in Castle Street Investments was suspended on Thursday morning, as the firm announced it was in advanced discussions with a potential acquisition targed in the IT manages services sector.

Due to Castle Street's status as an investing company, the AIM-listed firm said the acquisition would constitute a reverse takeover for the purposes of the AIM rules.

"The company and its advisors have identified, and a working with a new management team to lead the enlarged group if the acquisition completes", Castle Street said in a statement.

"The acquisition is of a size that would require a placing of new Castle Street ordinary shares to supplement Castle Street's existing cash resources, in order to meet the cash acquisition price and also provide additional capital to implement the enlarged group's growth plan", it added.

Castle Street said if the discussions proceed, the acquisition would be subject to shareholder approval and the admission of shares in the enlarged group to trading on AIM.