V22 rejects takeover approach

AN ISLE of Man-based company which makes collective investments in arts has rejected a takeover approach.

Douglas-based V22 plc, which is listed on the PLUS market, has ruled out an approach from an AIM-listed company which wanted to buy the business using its own shares as “not in the interest of shareholders”.

The offer values the company’s assets at 1.8p to 3p per share, or between £427,561 to £712,602. Although a 3p per share offer would value V22 at six times its current value, the offer would mean the firm effectively becomes an AIM company and the shares it was being offered were at a price that was a 140% premium on their current mid-market value.

“Although this deal would mean a potential route to the AIM market for V22 shareholders, the problems associated with valuation, liquidity, strategy, management and costs weigh heavily against this positive aspect,” the company said.

It also argued that it was currently preparing its 2011 year end results which include a revaluation of its art collection.

“The results and the revaluation are expected to be concluded by 31 May and show very positive signs.”