UK professional mobile radio (PMR) solutions provider Sepura has been given seven more days to negotiate a possible acquisition by Chinese PMR company Hytera. Originally, Hytera had to make a full bid or pull out of any deal by 2 December 2016.
But the UK Panel on Takeovers and Mergers has granted an extension. Hytera now has to declare its intentions by not later than 5pm on 9 December. Further extensions may also a possibility.
According to a statement made to the London Stock Exchange yesterday (30 November), Sepura said: “Positive discussions are continuing between the company and Hytera but there can be no certainty that any offer will be forthcoming. The board of Sepura has requested that the Panel on Takeovers and Mergers extend the deadline.”
The company added: “A further announcement will be made when appropriate. This announcement is being made with the prior approval of Hytera.”
Hytera’s interest in Sepura was first revealed by a statement to the London Stock Exchange on 4 November. The reference to ‘positive discussions’ and the request to extend the deadline would suggest that a takeover deal is certainly possible.
Cambridge-based Sepura has accrued large debts following its acquisition of Spanish PMR manufacturer Teltronic last year. It had to raise £65 million in funding in May to help its cash situation. The firm has issued two profit warnings this year.
In October, it appointed Alan Lovell as chairman and David Barrass as interim chief executive officer to replace CEO Gordon Watling, who is on an extended period of absence for medical reasons.
On 24 November, the company announce that restructuring and refinancing specialist Andy Leeser had been appointed a non-executive director for the Sepura Group. He recently led the restructuring of the Bella Italia and Café Rouge restaurant chain, the LA Fitness gym chain and Stanlow Refinery.
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