Promethean in £80m takeover talks
LANCASHIRE-based classroom education provider, Promeathean World, is in talks over a potential offer of around 40p per share, from a Chinese company.
Promethean, which has had a torrid time since listing on the Stock Market in 2010, is a target for a Hong Kong-listed group called NetDragon Websoft.
NetDragon, which is registered in the Cayman Islandss, said it is looking to pay $130m, (around £80m) for the Darwen-based business which has customers worldwide.
A statement this morning added: “This possible offer is in the early stage of due diligence and discussions, and there is no certainty that any offer will be forthcoming. A further announcement will be made on the London Stock Exchange and/or the HK Stock Exchange in due course.”
Promethean shares were floated at 200p in early 2010, but the company, known for its interactive whiteboards and ClassFlow technology which allows devices in the classroom to communicate with each other, has suffered a string of problems and has repeatedly sounded profit warnings.
Government spending cuts in developed markets have hit revenues while attempts to expand elsewhere have failed to compensate. The shares closed unchanged at 27.25p on Tuesdsay.
According to reports, the investors behind NetDragon, made their first fortune in a gaming venture and have $1bn or more of cash to invest. They have identified the education sector as a potential area in which to spend the money.
