(Alliance News) -Stirling Industries PLC on Thursday said it is preparing to wind up as it does not have the financial resources to explore further acquisitions.
The company, which is focused on acquiring industrial businesses, added it is taking steps to reduce costs and any remaining proceeds following the wind up will be returned to shareholders, provided no financing options emerge to undertake the previously announced acquisition of Ipsen International GmbH, a German steel-products heat treatment firm.
Stirling first confirmed talks to buy Ipsen in September, saying debt funding for the deal was secured and the company was also looking at securing equity funding.
However, on Thursday, Stirling said the Ipsen deal cannot be funded through public markets as many institutional investors have adopted a cautious stance due to "global trade and geopolitical tensions".
"Consequently, the company is continuing to consider alternative sources of funding for the transaction. This would enable it to implement its plans for Ipsen and/or monetise the considerable due diligence undertaken on the transaction in the interests of the company's shareholders," Stirling said.
Stirling Chief Executive Blair Illingworth said: "Having undertaken detailed due diligence on Ipsen, we know it to be a high-quality business with significant potential to grow, driven by its world-class technology, engineering capabilities and diverse geographical revenues. We remain convinced that Ipsen has an exciting future ahead of it."
Stirling shares remain suspended from trading, pending a further announcement.
By Tapan Panchal; tapanpanchal@alliancenews.com
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