“US-Based Technology Private Equity Firm” Stops Discussions to Acquire Plasmon
And the optical company delisted from the London stock exchange.
This is a Press Release edited by StorageNewsletter.com on September 30, 2008 at 11:47 amOn 5 September 2008, Plasmon Plc announced that it had continued its marketing exercise with a view to securing additional debt or equity capital and that it had not received commitments from potential investors that the Directors considered immediately necessary to fund the business and its ongoing working capital requirements.
The Company also confirmed that it had received an approach from a US-based technology private equity firm at an investment value of some $25 million and at a net price payable to shareholders of not more than 0.25 pence in cash per share, and confirmed that it was in preliminary discussions which may or may not lead to an offer for the entire issued and to be issued share capital of the Company. The investment value included a significant injection of new funds to enable a major restructuring to be completed. Given the absence of other financing options, and given the Company’s financial position, the Board concluded that such a sale was the best viable option for the Company.
The Company now confirms that these discussions have terminated. In the circumstances, Plasmon has requested, and the FSA has confirmed, an immediate suspension of the listing of the ordinary shares of the Company on the Official List of the FSA.
A further announcement will be made when appropriate.
Comments
Consequently, Plasmon is now searching for new firms to be acquired. But probably at a lower price than this unknown "US-based technology private equity firm" was offering: only $25 million, yet an amount considered by the company's board as "the best viable option".
The situation of the UK manufacturer has never been worst since its inception in 1982.
We considered that the best assets of Plasmon are its optical technology's IPs and its remarkable R&D, as well as its portfolio of customers of archiving systems, especially in the medical sector. But we will be surprised if the acquirer will pursue the next generation of UDO.
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