23rd Oct 2015 16:14
LONDON (Alliance News) - JinJing (Group) Co Ltd Friday said it has terminated talks with EKF Diagnostics Holdings PLC and said it does not intend to make a takeover offer for the company.
The pair had been in talks since late August about trying to strike a potential deal, with EKF awarding JinJing numerous extensions to make a formal offer, including a possible cash offer by JinJing and subsequent distribution of EKF's holdings in its molecular business to shareholders.
On Friday, JinJing said: "Jinjing today announces that discussions with EKF have now been terminated, and that Jinjing does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of EKF."
Back in September, China's JinJing said if it made an offer it would have been made solely in cash.
EKF released its own statement later Friday, noting JinJing's withdrawal from talks.
EKF has been undertaking a strategic review, and back in August said that if it couldn't strike a deal for its point-of-care assets that it would invite shareholder Ron Zwanziger to join the board as chairman, with the current chairman to become deputy chairman, and then to spin-off its molecular diagnostics division.
The spun-out division will be led by the company's current Chairman David Evans.
On Friday, EKF confirmed it will go ahead with that plan.
"Although we had a number of expressions of interest this has not let to a realisation event. We now look forward to working with Mr Zwanziger as chairman to build on the solid foundations of the EKF business. Mr Zwanziger brings strategic vision, leadership, extensive business and operating experience and an immense knowledge of the industry to our board," said Evans.
EKF shares closed down 0.2% to 20.96 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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