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Astek Group/ Westside Acquisitions
- BY: Andrew Hore |
- POSTED: 15/04/2010 |
- COMMENTS: Add yours
Dental products supplier Astek Group is effectively going private with independent shareholders being offered 0.625p a share in cash.
The share price rose 0.1p to 0.55p a share on the news. The bid values the company at £437,000 but the management (Alan Segal and Mark Shupac) and their families are retaining their shares and they will be the only shareholders left after the other shares are acquired via a scheme of arrangement. They own 35.1% of Astek at the moment. Segal will loan cash to Astek so that it can finance the share buy back. Astek had net debt of £202,000 at the end of September 2009.
The management believes Astek is too small to be quoted and the low share price makes it difficult to finance acquisitions. Astek floated on 25 October 2006, having raised £1.25m at 5p a share.
Revenues increased 25% to £1.37m in the year to March 2009, with the pre-tax loss reducing from £553,000 to £155,000. Astek made a small loss on revenues of £624,000 in the six months to September 2009. Production difficulties and a slow down in some markets have hit the business. Astek directors are being paid 50% of their contracted salaries.
Aim-quoted Westside Acquisitions will receive £125,000 for its 20m shares in Astek. At 0.55p a share, Westside is valued at £610,000.
Westside had a net asset value of £1.13m at the end of June 2009. The market price of Astek was around 0.75p a share at that time but the adjusted NAV would still be £1.1m. There was net cash of £532,000 at the end of June 2009. However, these figures include Aim-quoted Pantheon Leisure, which is consolidated because Westside owns 62.5%.
Westside owns 800,000 shares in Cheerful Scout and 23m shares in Messaging International. They are valued at £84,000 (at 10.5p a share) and £150,000 (at 0.65p a share) respectively. Even allowing for the bid/offer spread, these investments are worth slightly more than at the end of June 2009.
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