Datong looks to sell following approach

COVERT intelligence gathering specialist Datong has put itself up for sale.

The Leeds-based company, which launched a strategic review in December following a dip in revenues, said the move had been prompted after an approach was made from an unnamed party for the business.

“Following an approach by a potential offeror, the board of Datong has decided that it would be in the best interests of the company’s shareholders to seek potential offerors by means of a formal sale process,” the company said in a statement to the stock market.

Datong said any interested parties making approaches for the business would not have to publicly identify themselves.

The sales process is to be made through Datong’s adviser, Cavendish Corporate Finance.

Once interested parties have signed a non-disclosure agreement Datong will provide further information.

“This formal sale process is at an early stage and the board wishes to stress that there can be no certainty that any transaction will be concluded,” Datong added.

The company’s revenues for the year ended September 30 fell by £2m to £9.69m. However, Datong won a £7.5m in December.

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