Renovo makes Ultimate Finance approach

RENOVO, the former Manchester-based drug company, has made an approach to lender Ultimate Finance that could lead to a takeover.

The business, which is now essentially a listed cash shell after abandoning its drug development work, invested £1.7m in Bristol-based Ultimate Finance in December.

In a statement to the stock market, Ultimate said discussions were at an advanced stage, “however there can be no certainty that an offer will be made for UFG, nor as to the terms on which an offer may be made”. Renovo has until 5pm on August 14 to make an offer.

Renovo ended its association with the medical world last year after selling its remaining assets of anti-scarring treatment Prevascar. In 2011 it axed trials of its most advanced scar reduction drug, Juvista, and then closed its Manchester base, laying off all but a handful of staff. It is now an investing company with £26.4m in cash.

Co-founder Professor Mark Ferguson resigned in January but still holds 8% of the shares. The business is now led by chairman Jamie Brook, chief financial officer David Blain and non-executive Max Royde. The biggest shareholder is Henderson Global Investors which has 35%.

Ultimate Finance has an office in Mosley Street, Manchester.

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