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LONDON (Alliance News) - Worthington Group PLC Wednesday said it is not in direct talks with an overseas listed company as it reported at the end of March, and said the overseas company needs refinancing before any potential merger is completed.
On March 31, Worthington said it was in direct talks about merging with an overseas listed company to avoid having to declare itself as an investment fund after UK regulators had ruled the company's recent but un-named acquisitions constituted a reverse takeover and deemed Worthington to be a "fundamentally different business" following the deals, something the company had denied.
Worthington had said the potential merger would represent a "a significant premium to Worthington's suspended share price", which last traded at 85.50 pence per share.
However, on Wednesday, Worthington said it "is not in direct discussions with an overseas listed company, as previously stated," and in addition, Worthington said the overseas company requires refinancing before any potential deal progresses.
Worthington is currently talking to a group of investors in order to try and set up a special purpose vehicle which could provide funding to the overseas company to allow the proposed merger to go ahead, but it also said that the financing would be subject to the entire board of the overseas company being changed before any money is handed over.
Worthington said once the special purpose vehicle is set up and financing has been provided to the overseas company, an offer could be made, but Worthington said there was no certainty a deal would be completed.
Worthington said it will be able to provide further information before the end of April.
Worthington shares are currently suspended from trading.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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