Belphar Ltd has decided not to bid for Pan European Terminals.
The targetís board had stated that it did not believe that the 22p a share indicative cash offer was high enough and Belphar did not want to proceed without a recommendation.
The Pan European share price has slipped back to 19.5p.
Shareholders in Pan European agreed to allow shares to be allotted for the conversion of the £8.5m 10% secured convertible loan note, which is owned by Belphar. This would be an addition 38.6m shares. However, at the same general meeting shareholders did not agree to disapplying statutory pre-emption rights - 61.4% of the votes were against this resolution. This means that the issue of the new shares is still dependent on shareholder agreement.
A premium payment of £550,000 will be made to Belphar as a consequence of the terms of the convertible.
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