I hope this doesn't fall over, though the company does look in good shape.
Looks like we're staying in trading halt for a little longer.
Regards, Snake13.
UPDATE ON VECTIS’ MERGER PROPOSAL
The Board of Espreon Limited (“Espreon” or the “Company”) advises it has been notified that Vectis Group Pty Limited (“Vectis”) does not intend to proceed with its merger proposal at $0.705 cents per share as announced to ASX on 1 July 2008.
Vectis also notified Espreon that it was prepared to revise its offer to $0.65 cents per share.
Espreon indicated to Vectis that it remains prepared to recommend an acceptable merger proposal at $0.705 cents per share, as previously agreed, in the absence of a superior proposal and subject to the opinion of an independent expert that the transaction is in the best interests of Espreon shareholders.
An acceptable Scheme Implementation Agreement would also need to be agreed. The draft agreement proposed by Vectis contained terms and conditions which were not acceptable to the Board.
Espreon and Vectis have agreed to continue discussions with a view to reaching a mutually acceptable proposal which may be put to shareholders.
Vectis indicated that it appreciated Espreon’s full cooperation and assistance in conducting its due diligence.
The Due Diligence Agreement entered between Espreon and Vectis to facilitate Vectis’ merger proposal has expired. The corresponding exclusivity period also expired with it.
In making this announcement, the Board of Espreon once again cautions that there is no assurance that any proposal will result in a specific transaction.
The Board and management remain focussed upon maximising shareholder value.
FY2008 FULL YEAR TRADING UPDATE
The Board is pleased to announce that the Company’s operating performance for the year ended 30 June 2008 is expected to exceed the previous earnings guidance provided on 19th February 2008 as part of the Company’s results announcement for the half year ended 31 December 2007.
Based on preliminary accounts, the Company’s unaudited Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) for the year ended 30 June 2008 is expected to be around $12.4 million.
The Company’s Net Profit After Tax (“NPAT”) for the period is expected to be around $4.8 million, which would represent an increase of 48% over the previous corresponding period NPAT of $3.2 million (excluding adjustments to goodwill). This would equate to earnings per share (“EPS”) of around 5.1 cents and cash earnings per share (EPS before amortisation of acquired intangibles) of around 6.2 cents. The results remain subject to audit and review of asset carrying values. The Company expects to announce final results in late August 2008.
This overall operating result is ahead of expectations despite some declines in economic activity in various markets in which the Company operates. Espreon’s Managing Director, Mr Craig Kennedy, said the Company’s performance was particularly pleasing considering the challenging market conditions experienced during the second half of the 2008 financial year.
The Company’s net debt was $20.2 million at 30 June 2008, representing a reduction of $7.8 million on the prior corresponding period.
EON Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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