LONDON (Alliance News) - Investment company Better Capital PCC Ltd said Monday that its deadline to sell Northern Aerospace Ltd had passed and the deal will not go ahead.
Better Capital, also known as BECAP 12 GP Ltd, could not obtain permission from the UK Competition & Markets Authority in time for the deadline.
It has, therefore, cancelled its plan to sell Northern Aerospace, an aerospace parts manufacturer, to Chinese-owned Gardner Aerospace holdings.
The investor said it had been advised that there were "national security issues" but said it was ignorant as to how the sale, which would have been worth GBP44 million to Better Capital, could give rise to any national security concerns.
"Northern Aerospace and BECAP 12 GP believe that they have clearly demonstrated that there are no competition issues and that all the matters raised by the Ministry of Defence...have been satisfactorily disposed of," Better Capital said in a statement.
"Northern Aerospace has well established plans for its continued separate existence and will now continue in implementing those plans," Better Capital said.
Shares in Better Capital were untraded at 63.00 pence on Monday.