(Alliance News) - SourceBio International PLC on Wednesday proposed the cancellation of its shares trading on the Alternative Investment Market.
The Nottingham, England-based laboratory services provider said it will re-register as a private limited company.
It said that the cancellation is in the "best interests of the company and its shareholders as a whole", adding that as private company its growth prospects command a "higher valuation for the business."
As a result, SourceBio proposed a tender offer to return shares to qualifying shareholders.
The proposed tender offer will see up to 11.1 million ordinary shares returned to qualifying shareholders at a price of 115 pence per share, representing around 15% of the existing share capital of SourceBio.
If the maximum number of shares under the tender offer is acquired, this will result in GBP12.7 million being returned to shareholders.
SourceBio said it has received irrevocable undertakings from some shareholders and directors not to tender their shares under the tender offer. This represents 79% of the existing issued ordinary share capital of SourceBio.
"The board is encouraged with the prospect of accelerating revenue and earnings growth as a private company where management can focus more on the core needs of the business, and for those shareholders not accepting the tender offer, I look forward updating you as we progress," Executive Chair Jay LeCoque said.
SourceBio shares closed flat at 110.00 pence on Wednesday in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.