Velocys says GBP4 million takeover receives court approval

(Alliance News) - Velocys PLC on Friday said that its proposed takeover has received court approval, with the transaction expected to reach completion on Wednesday.

Velocys is an Oxford, England-headquartered sustainable fuels technology company. In early December, it agreed to a cash takeover by Madison Bidco. Madison Bidco is made up of funds advised by Lightrock, Carbon Direct Capital, GenZero and Kibo Investments.

It will pay 0.25p per Velocys share, valuing the company at around GBP4.1 million on a fully diluted basis. It had also agreed to provide up to USD40 million of growth capital upon acquisition completion to ensure that the company retains sufficient resources to "deliver against Velocys' medium-term strategic plans".

On Monday, the deal was backed by Velocys shareholders and the company has now confirmed that the acquisition has been sanctioned by a court order.

Shares in Velocys were down 1.1% at 0.24 pence each in London on Friday afternoon.

By Hugh Cameron, Alliance News reporter

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