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Raymarine confirms takeover approach

11th Mar 2010, 10:20 am Raymarine confirms takeover approach

Navigation equipment maker Raymarine (AIM: RAY) noted the recent hike in its share price and confirmed it has received a further approach from a third party, which may or may not lead to an offer being made for the entire issued share capital of Raymarine at approximately 3.6 pence per share.

On December 18, the company announced it had entered into discussions over a possible sale of its business and assets through the disposal  of its wholly owned subsidiary Raymarine Holdings Ltd, which would not leave any value remaining for shareholders.

“There can be no certainty that the potential offer (announced today) will be made even if due diligence is completed satisfactorily, nor as to the terms on which the Potential Offer might be made,” Raymarine said in the statement.

Meanwhile, the group and its banking syndicate remain in discussions over an extension of Raymarine’s existing facilities, which are currently set to expire on 31 March 2010.

Shares in Raymarine have doubled over the last few days, hiking from 2 pence to 4 pence. The stock added nearly 25% in today's morning session.

This is not the first time Raymarine skyrockets on takeover speculation. Back in August, shares soared on reports that the group received an approach from American satellite navigation giant Garmin (NASDAQ: GRMN).  Earlier in 2009, Raymarine said it would either go for an equity fundraising or entertain sale offers after the company said it was operating close to the limit of its current bank facilities.

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