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SourceBio International PLC on Wednesday proposed the cancellation of its shares trading on the Alternative Investment Market.
The Nottingham, England-based laboratory services provider said it will re-register as a private limited company.
It said that the cancellation is in the ‘best interests of the company and its shareholders as a whole’, adding that as private company its growth prospects command a ‘higher valuation for the business.’
As a result, SourceBio proposed a tender offer to return shares to qualifying shareholders.
The proposed tender offer will see up to 11.1 million ordinary shares returned to qualifying shareholders at a price of 115 pence per share, representing around 15% of the existing share capital of SourceBio.
If the maximum number of shares under the tender offer is acquired, this will result in £12.7 million being returned to shareholders.
SourceBio said it has received irrevocable undertakings from some shareholders and directors not to tender their shares under the tender offer. This represents 79% of the existing issued ordinary share capital of SourceBio.
‘The board is encouraged with the prospect of accelerating revenue and earnings growth as a private company where management can focus more on the core needs of the business, and for those shareholders not accepting the tender offer, I look forward updating you as we progress,’ Executive Chair Jay LeCoque said.
SourceBio shares closed flat at 110.00 pence on Wednesday in London.
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