Microgen Still Considering Elektron Offer

LONDON (Alliance News) - Microgen PLC Tuesday said it is still considering a number of options, including a takeover offer, for Elektron Technology PLC.

In a statement, Microgen said it is also considering the option of providing substantial refinancing to establish a firm foundation from which to rebuild Elektron, or even an acquisition of its instrumentation, monitoring and control business.

However, Microgen said there can be no certainty that any proposal set out in the announcement will be pursued or made.

"Microgen notes recent press and other speculation that Elektron held extensive dialogue with a large number of shareholders last week. Such a series of meetings is consistent with Microgen's belief that Elektron's preferred solution is a modest fund raising from primarily existing shareholders," Microgen said in a statement.

"As noted in the Microgen announcement on May 20 2014, Microgen believes that a limited cash injection will merely defer the problem; that it will not provide the necessary confidence to non-equity stakeholders; and hence it will not provide the platform required to rebuild the company," Microgen said.

On May 20, Microgen said it remained interested in making an offer for Elektron Technology in whole or in part, even though previous proposals to invest in the business have been rejected.

Under takeover rules, Microgen must make clear whether or not it wants to make an offer and has until June 17 to do so.

Elektron Technology shares were Tuesday quoted at 4.62 pence, flat.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

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