|
Sivota PLC on Tuesday said it expects its flagship investment to be valued at zero. The London-based investment vehicle said Apester Ltd, a majority-owned subsidiary in Israel and the company’s sole investment, has decided to file for bankruptcy after seeking legal advice. Sivota shares were down 82% to 5.00 pence each in London on Tuesday afternoon. Apester, which operates a platform that enables businesses to better engage with their audience simultaneously across multiple platforms, was acquired in May 2022 for $12.0 million with Sivota purchasing a 58% stake. Since the purchase, Sivota has implemented changes including the appointment of Chief Executive Officer Anni Ben Yair alongside other board members and key executives. In 2023 Apester reported an earnings before interest, taxes, depreciation, and amortisation loss of $2.5 million, a slight improvement from $2.6 million the previous year. ‘[Due to] a deterioration in trading performance it can no longer proceed as a going concern...It is expected that the bankruptcy hearing will occur later this month in Tel Aviv. At this point, Sivota cannot assess what recovery it will make in respect of its investment in Apester, but that recovery is not expected to be material,’ Sivota said. Consequently, the board expects to write the carrying value of its investment in Apester to zero. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
