30th Aug 2023 10:22
Kinovo PLC - London-based property services provider offering safety compliance and sustainability solutions - Rx3 Holdings Ltd says it still is considering making a formal takeover offer for Kinovo, but there is no certainty it will do so. Rx3, which is owned by Kinovo's largest shareholder, had confirmed on Friday that any offer that it would make would be for at least 40 pence per share. Kinovo previously had said Rx3 had approached it with a possible offer price of 56p, which it had called "at the lower end of the board's expectation".
On Wednesday, Rx3 sets out "background" to its possible offer, which it says could be by either a scheme of arrangement or contractual offer. It notes uncertainty for Kinovo caused by DCB Kent Ltd construction contracts, for which Kinovo has provisioned GBP4.3 million. Rx3 notes the total value of the contracts is GBP18 million, meaning the provision could prove inadequate. "The company's auditors continue to question the ability of the company to continue as a going concern given the uncertainties...around DCB," Rx3 says.
Kinovo issues no immediate response early Wednesday.
Current stock price: 47.20p, down 9.2% on Wednesday in London
12-month change: up 33%
By Tom Waite, Alliance News editor
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