NetServices approached for acquisition
NETWORK provider NetServices has been approached by a potential buyer, interested in acquiring most parts of the business.
The Salford-based company confirmed the expressions of interest after its share price rose from 7.4p on Wednesday morning to a high of 10p on Friday, before falling back to 9.5p.
The interest is in its managed services business, including its shareholding in WAN Services Limited, which represents the majority of the company’s business and assets.
If the offer proceeds to contract, the company will publish a shareholder circular with details of the proposed disposal, to be approved by shareholders at a general meeting.
“There is however, no guarantee that these expressions of interest will lead to a transaction. The company will make a further announcement in due course,” it said in the stock market statement.
In January, shareholders approved a cash injection from investor Ian Smith, who is chief executive of West Sussex-based IT firm Xploite.
Mr Smith paid £115,000 for 3.3 million new shares at 3.5p each, taking his total shareholding to 12.2%. He also had the option to invest a further £2m in extra shares at 8.7p.
NetServices said Mr Smith’s investment would give it the capital required to pursue an acquisition strategy and Mr Smith’s industry knowledge would strengthen the company’s ability to deliver shareholder value.
