19th Feb 2014 15:49
LONDON (Alliance News) - Shares in Snacktime PLC Wednesday said it is not in talks with any other companies over a potential takeover offer, after its shares plunged in the wake of earlier news that suitor Uvenco UK Ltd said it had ended talks about potentially buying the drinks and snack vending machines operator.
SnackTime, which prior to receiving the Uvenco had appointed Smith & Williamson Corporate Finance to review options for Drinkmaster, said it is now in a position to resume its review of the seal cup operation. The review could result in divestment of the operation.
Uvenco had announced in January that it was in talks about a potential offer for Snacktime, but Wednesday said the sides had not been able to agree a deal and so it had terminated the talks.
Snacktime shares were down 26.7% to 11 pence, making it the biggest AIM loser on Wednesday.
In November, Snacktime said its pretax loss narrowed in its first-half, despite a drop in revenues, as it cut sales and distribution and administration costs. Revenues fell 6.6% to GBP9.5 million in the six months to September 30, from GBP10.2 million a year earlier.
At the time, Snacktime said it was entering a second phase of restructuring, focused on reducing operating costs, increasing the use of technology, growing its franchise network.
By Tom McIvor; [email protected]; @TomMcIvor1
Update by Samuel Agini; [email protected]; @samuelagini
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