The following information relates to Wren plc, a company listed on the UK stock exchange that distributes building products to builders merchants around the country. Wren is evaluating an investment opportunity involving organic expansion into operating leisure facilities such as gyms and swimming pools.

Extract from summarised statement of financial position (E'000) Equity Ordinary shares (f1 nominal value) 90 Reserves 460 550 Non-current liabilities Bank loan 45 8% bonds (f100 par value) 135 180 Current liabilities 80 Total equity and liabilities 810