28th Jan 2020 18:33
(Alliance News) - Quarto Group Inc on Tuesday said it has rejected an unsolicited takeover offer put to it by Octavian Media LLC in October.
The book publisher said it concluded that the takeover proposal was not in the best interests of the company or its stakeholders, and it did not believe the proposal was capable of being completed.
Quarto said that it would not accept the offer but it would continue with its plans to raise funds via an open offer to shareholders alongside the renegotiation of its debt facilities.
Earlier in January, Quarto confirmed plans to raise GBP13.9 million in gross proceeds through an open offer of shares which would give shareholders the pportunity to subscribe for 20.4 million shares at 68 pence per share on the basis 1 new share for every 1 already held.
The money raised will be used to reduce bank debt with net proceeds expected to total GBP12.8 million.The London-based company aid that as November 30 last year, the size of its debt was USD54 million, around GBP41.4 million. It also owed USD13 million to the Lau Parties and Recruit & Co Ltd.
It said that its lenders have agreed to extend the final repayment date of its existing facilities agreement to July 31, 2021 and to extend some of its covenants. However, if the open offer does not complete, the agreements with the lenders will be terminated and any outstanding amounts owed will have to be repaid by August 31 this year.
Quarto shares closed 5.0% up at 73.50 pence each on Tuesday in London.
By Ife Taiwo; [email protected]
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