SHAREHOLDERS in electrical group, Silvermines, have approved the acquisition of the Continental Microwave Group, at an extraordinary general meeting. Silvermines is purchasing the British broadcasting television equipment company for an initial £10 million based on its net asset value.

Industry sources have speculated, however, that the total consideration may amount to £11 million, when the purchase is finalised.

The acquisition will be part funded by a rights issue. The company has issued 40 million new shares at 2.5p each. The final take up of the new shares has not yet been disclosed.

Speaking to shareholders at its meeting in Dublin yesterday, Silvermines group managing director, Mr Clem Jansen, said the acquisition would greatly boost - the company's future earnings. Mr Jansen added that he believed there were many opportunities for organic growth within the company, stressing that it didn't need another acquisition to accelerate profits and growth. "But if the right opportunity comes to our attention, we will go for it."

Slivermines has diversified interests in the electrical business. Its latest acquisition is a substantial earner, and is expected to contribute turnover of up to £25 million a year to the group.

Net margins in the microwave transmission business are also relatively high, according to Mr Jansen, generally of the order of between 15 per cent and 20 per cent. "Silvermines will see all of the upside from this acquisition. "It's previous owners have added a range of new products, including electronic news gathering services and satellite and other broadcast services," he said.

The group's other business interests, which include close circuit television and monitoring technology, he said, were performing well in the current year, with trading in line with expectations.