(Alliance News) - Joules Group PLC on Tuesday insisted it continues in "positive" discussions with Next PLC over a possible investment, despite Sky News over the weekend reporting that talks had stalled.
Joules shares fell 8.1% to 23.44 pence each on Tuesday just before midday, giving the company a GBP26.3 million market capitalisation. The stock is down 83% so far in 2022.
Sky News on Sunday, citing "City sources", said the two companies are not close to agreeing the terms of an investment from Next, and the FTSE 100-listed retailer had not received enough financial information to allow it to make a formal offer to the Joules board.
There also were doubts that Next would want to proceed with a deal at 33p per share or more given Joules shares closed at 25.5p on Friday. Sky News said.
The move, if it goes ahead, will see Next inject about GBP15 million into Joules, the AIM-listed company said earlier in August, noting at the time the price would be "at no less than Joules' current market price", which was 33p the day before the two companies confirmed they were in talks.
Joules on Tuesday said: "There can be no certainty that these discussions will lead to any agreement, and further announcements in this regard will be made if and when appropriate."
Shares in Next were up 2.8% at 5,894.00p.
By Xindi Wei; xindiwei@alliancenews.com
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Next (NXT)