(Alliance News) - Acquisition vehicle Stirling Industries PLC confirmed Wednesday it will be self-liquidating after failing to find any funding for a takeover.
In early September, Stirling confirmed it was in "advanced" talks over the acquisition of German steel products heat treatment firm Ipsen International GmbH. Debt funding had been agreed in principle, it added, and it was looking for equity funding.
However, a month later Stirling said it had failed to find any equity funding, blaming "global trade and geopolitical tensions" for weakening market sentiment. It was, however, still looking for alternative funding.
This has not materialised, and Stirling on Tuesday said: "The board is disappointed to confirm that no viable source of funding has been secured.
"In addition, given the continued headwinds in the macro environment and in particular in the midcap industrial sector, the board has concluded it is in the best interests of all shareholders that it proceeds to focus on the preparation for an orderly delisting and winding up of the company and to return remaining funds to shareholders."
Funds will be returned to shareholders at 7 pence per share held. Stirling has 8.9 million shares outstanding, suggesting a GBP623,000 return. The stock last traded in September at 41.90p.
Chief Executive Blair Illingworth commented: "Ipsen is an ideal asset with strong performance improvement potential and very much in line with our investment policy and raison d'etre. It is with great disappointment we have concluded the timing and financing markets are not currently supportive of this transaction and therefore the Stirling Industries model.
"We have done what we clearly set out at our IPO and the team has performed extremely well in getting this potential transaction to this point. It is both disappointing and frustrating circumstances beyond our control have conspired to prevent further progress. Notwithstanding we are very grateful to our investors and advisors for their support, and we thank them."
Stirling listed in London in March 2018, targeting acquisitions in the industrial sector. Shares have been suspended since September while Ipsen talks continued.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
