AIM listed Stockport packaging and foils manufacturing group API, has reported that it has recieved “below market value” offers after being put up for sale in September last year when it stated a market value of £48m.
API, which is partly owned by US investors Steel Partners and Wynnefield Capital who own 32.3% and 29.6% respectively, said it had received a number of offers as it has seen its share price rise by more than 30% from 68p to 90p over the past 2 months. However, the company also declarded that any agreed bid is unlikely to match the current share value.
Reports today from the company has warned that “Indicative proposals received to date have been below the closing mid-market price of API shares of 90p on January 24.”
In the six months to September 30 revenues were static at £58.8m while pre-tax profits climbed 29% to £3.7m.
In an update to the stock exchange today (25 January 2013), API Group said: “(The sale) process continues with the aim of securing a firm offer which can be considered by the board and then, if appropriate, put to shareholders.
“Indicative proposals received to date have been below the closing mid-market price of API shares of 90p on 24 January 2013.
“The board wishes to emphasize there can be no certainty any formal offer will be made for the company, or even proposed, or as to the level of any proposal or offer that may be made.
“The board reserves the right to alter any aspect of the formal sale process or to terminate it at any time.”
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