ScS in takeover talks
The Directors of ScS have requested a suspension in the trading of the Company’s shares with immediate effect
The Company announced on 15 June 2008 that it was in discussions with a number of external parties to address the working capital requirements of its suppliers, and therefore its own working capital position.
“The directors have received an approach from one of the parties to acquire the entire share capital of its sole trading subsidiary. This approach would see the trading subsidiary being provided with substantial working capital facilities that would fully resolve the working capital issues and ensure all suppliers have a strong and ongoing relationship with the business.
To enable discussions to be progressed to a speedy conclusion the Company has entered into exclusive discussions with the external party, and due diligence is underway.
However, as these discussions have developed, it has become clear to the Directors of ScS that the extent of the additional working capital funding required may result in only negligible value being attributed to the shares in ScS Upholstery PLC.” the company said in a statement.
