Asia Distribution Solutions Ltd has received a takeover approach.
The China-based branded food and drink distributor says that discussions are at an early stage and due diligence has to be carried out and finance obtained.
ADSL points out that it is based in the Cayman Islands so it is not regulated by the UK Takeover Panel. The company’s Articles of Association state that no one or connected group can acquire 50% or more of the shares in the company until it is valued at more than £20m – still a long way away. However, the board can permit the acquisition of more than 50% under certain circumstances. Presumably a recommended bid would count.
The shares jumped 5p to 22.5p, valuing ADSL at £6.9m.
ADSL was introduced to Aim on 7 November 2007.
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