17th Jun 2014 10:52
LONDON (Alliance News) - Microgen PLC Tuesday said that is does not intend to make an offer for Elektron Technology PLC, after its latest advances were rebuffed by the technology group.
In a statement, AIM-listed Microgen said it detailed on Wednesday last week a potential offer for Elektron, which is listed on the London main market. The proposal outlined a potential offer valuing Elektron at five pence per share in cash. That would value all Elektron shares at GBP6.0 million, giving an enterprise value for the company, after adjusting for net debt, of GBP13.6 million at the end of April, according to Microgen.
Elektron rejected the offer proposal on Friday, according to Microgen.
Elektron shares were Tuesday quoted at 4.00 pence, down 5.9%, while Microgen shares were down 0.7% at 126.66 pence.
Microgen also noted that Elektron did not express any interest in considering a previous refinancing proposal, which was rejected in May.
"Microgen considers that its offer proposal reflected fair, and arguably generous, value for Elektron shareholders. However, without a recommendation from the board of Elektron, Microgen confirms that it is inappropriate to proceed with its offer proposal at the present time, and therefore Microgen does not intend to make an offer for Elektron. Similarly Microgen cannot proceed with its refinancing proposal without the support of the Elektron board," Microgen said in a statement.
Under takeover rules, Microgen cannot make an offer for Elektron within the next six months.
By Samuel Agini; [email protected]; @samuelagini
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