News blog
Blue Star Mobile
- BY: Andrew Hore |
- POSTED: 15/04/2008 |
Management is buying the business of Blue Star Mobile.
The management says that it has been frustrated by its Aim quotation and lack of interest from investors but its poor figures, including a large bad debt, have been the reason for this in recent months. The bad debt remains outstanding and new contracts have been slower than expected in coming through.
This has made it difficult to raise money and Blue Star is running short of funds. Management considered cancelling the Aim quotation but decided an offer for the businesses provides a more sensible exit.
The management buyout vehicle Blue Star International is buying the two main businesses and the other two subsidiaries will follow later – they are overseas and the transfer of ownership is more complicated. It will pay £175,000 up front and £50,000 six months after completion. The management behind the buyout has also agreed to redesignate their 6.47m ordinary shares as deferred shares. The EGM to vote on the disposal will be held on 8 May.
Blue Star Mobile will become a shell. It will look for a potential acquisition, but the remaining directors don’t have expertise in this area, so it doesn’t believe that there is much chance it will happen. If an acquisition isn’t found six months after the disposal then the remaining cash will be returned to shareholders. There will be costs related to the members voluntary liquidation that will be required.
The shares slumped 0.375p to 0.625p. That values the company at £180,000. Excluding the management’s shares the value of the company is just over £140,000.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|