There will not be a bid for Scotty Group but it may sell all of its operations.
Communications equipment and technology developer Scotty said that it was in talks with a third party last May and it has started discussions with others since then. Invest Equity GmbH wants to buy the Austrian and North American subsidiaries of Scotty and their associated intellectual property.
Private equity firm Invest Equity is offering €4.2m in cash for the businesses, although €2m would be used by Scotty to repay money it owes to the Austrian business. Scotty would be left as a shell. Shareholders will vote on whether or not negotiations should continue and later they will have to agree to the sale.
If the sale does not go ahead then a director will invest £500,000 in new shares and a quotation will be sought on the Third Market of the Vienna Stock Exchange. The company would also change its domicile from England to Europe. Scotty may eventually decide to drop its Aim quotation.
Cutting the number of people on the board should save £250,000 a year.
At 7.75p a share, Scotty is valued at £1.57m. The shares have more than halved since the bid talks were announced in May.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.