API ditches sale process
PACKAGING group API has scrapped sale talks, saying the offers it had received were not likely to “deliver best value for shareholders”.
The announcement came as it warned on full-year profits due to a poor performance at the holographics arm, which helps companies tackle fraud and counterfeiting by developing holographic logos on packaging
Last year the business, 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.
There were several offers on the table and talks had reached the due diligence stage.
In a stock market statement the AIM-listed company said: “Following careful consideration, the board has concluded that a sale of the group at this time is unlikely to gain sufficient recognition for the underlying value of the business or to deliver best value for shareholders.
“As a consequence, the board has decided to terminate the formal sale process with immediate effect.”
It added: “The board remains focused on maximising shareholder value and committed to maintaining an open dialogue with shareholders about how best that can be achieved.”
In a trading update the company said its annual figures will show a “substantial” improvement due to progress in the foils division in the US and Europe, and in laminates. But the weaker performance in holographics means figures for the year to March 31 are likely to be marginally below previous management expectations.
In the six months to September 30 revenues were static at £58.8m while pre-tax profits climbed 29% to £3.7m.
