API warns investors over potential bid price
PACKAGING group API, which is in the midst of a formal sales process, has warned investors not to get too carried away.
Responding to a recent rise in its share price, the AIM-listed, Stockport-based specialist foils manufacturer, said that while it is continuing dialogue with several suitors, it is unlikey the bid price will be at current market levels of 90p.
The company said: “Indicative proposals received to date have been below the closing mid-market price of API shares of 90p on January 24.”
Since its last update on November 29, when the group said it had received a number of offers, the share price has risen by more than 30% from 68p to 90p, rising steadily over the last month.
It is being advised in the sale process by the Manchester office of investment bank Altium.
API, which has manufacturing sites in Salford and Scotland, was put under pressure to sell by New York-based investors Steel Partners and Wynnefield Capital which own 32.3% and 29.6% respectively.
In the six months to September 30 revenues were static at £58.8m while pre-tax profits climbed 29% to £3.7m.
