News blog
Zenith Hygiene
- BY: Andrew Hore |
- POSTED: 10/10/2008 |
Zenith Hygiene’s unhappy stay on Aim is coming to an end.
Its management, headed by former chief executive Ringo Francis, is bidding 12p a share to take the supplier of cleaning and hygiene products private. The shares were almost alone in rising on the day. They were 0.25p higher at 11.25p.
The bid values the company at £2.58m – less than the cash raised when Zenith floated.
Zenith joined Aim on 8 February 2005 when it raised £4.5m at 100p a share.
The buyout vehicle is offering shareholders the chance to forgo the cash and take its shares instead. It is a straight choice between cash and shares there is no mix and match option. Up to 21.5m shares in the buyout vehicle are available for the share alternative.
The new company will refinance its existing debt and Stanley Fink is investing £10m. That will reduce the gearing of the business and put it in a stronger financial position. The operations will cut costs in order to prosper in a tougher business environment.
Zenith’s second half revenues for the year to August 2008 were slightly lower than the first half.
I remember after Zenith floated the management told me that they got a positive response from all the investors they went to see except one. They put this down to the fact that “he didn’t understand” the company but maybe he had a better understanding than the rest.
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