IN BRIEF: Tooru decides not to proceed with Mylky acquisition
Tooru PLC - AIM-listed company focused on the branded health and wellness sector - Decides not to progress the proposed acquisition of Mylky BV. Explains that the acquisition structure included a significant level of new debt, and Tooru believes that now is not the right time to take on more debt and increase the group's leverage. Also, says the time taken to put such a facility in place would exceed the expectations of the vendor given the other opportunities that they were being presented with. Furthermore, the use of equity as an alternative would have been too dilutive at the current levels of the company's equity valuation given the relative size of the proposed acquisition. In addition, further work highlighted that the acquisition would have exposed the group to the risk of European legislation in relation to the major part of the enlarged business which, on further examination presents too high a risk. Thus, believes that it is in the best interest of shareholders to continue focusing on existing businesses where there is "significant potential for low-risk growth in the short term whilst, at the same time continuing to look at more directly-aligned acquisitions." Read More