(Alliance News) - PureCircle Ltd shares dropped sharply on its return to trading on Wednesday morning.
The stevia sweetener producer was suspended back in October due to delays in publishing its results for the year ended June 30, 2019. PureCircle shares were 31% lower at 90.70 pence each in London on Wednesday morning.
The numbers, which were eventually posted at the end of March, showed PureCircle's pretax loss widened to USD72.2 million from USD3.4 million, on revenue which was down by 2.1% to USD124.0 million.
Last Thursday, PureCircle said it agreed to a GBP185.3 million deal which will see US-based food ingredients maker Ingredion Inc acquire a controlling stake in the firm.
Under the terms of the acquisition, PureCircle shareholders will receive 100 pence in cash for each PureCircle share or will be able to receive shares in SRSS Holdings Ltd, a UK company formed by Westchester, Illinois-based starch producer Ingredion.
PureCircle investors opting for the share alternative will get one SRSS share for each PureCircle share held.
SRSS will also provide USD130 million funding to PureCircle to repay outstanding debt.
Following the completion of the deal, Ingredion will own 75% of SRSS, while minority PurcCircle shareholders electing for the share alternative will own 25%.
By Eric Cunha; ericcunha@alliancenews.com
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