Carclo to raise 3.7 mln stg to hasten tech projects

on December 16 2009 12:55 PM

* Says to place 2.9 mln shares at 128.5 pence each

* Trading in line with own expectations

* Says deal with Atmel may help profit in 2011, 2012 (Adds details)

British technical plastic products supplier Carclo Plc (C1Y.L) said it would raise 3.7 million pounds ($6.01 million) from a placing of shares to accelerate projects in its technology business.

The company, which would place 2.9 million shares at 128.5 pence apiece, said trading was in line with its own expectations since the issue of its interim results on Nov. 24.

Carclo said it recently entered into an agreement with Atmel Corp (ATML.O) for the development of a new touch screen product, a deal that could boost its 2011 and 2012 profits if the U.S. chipmaker met minimum annual volume targets.

Shares of the company closed at 128.5 pence on Tuesday on the London Stock Exchange. ($1=.6153 Pound) (Reporting by Aditi Samajpati in Bangalore; Editing by Deepak Kannan)