A private equity firm has withdrawn its offer to bid for Kinovo PLC (AIM:KINO, OTC:BILBF) despite the UK-based property services company winning a spate of new contracts worth millions of pounds.
Institutional growth equity firm Rx3 Holdings said on Tuesday that it would not pursue a formal offer for the company due to concerns over not being given access to the information needed to perform due diligence on some of its projects.
Proactive Investors reported earlier this month that many of Kinovo's latest contracts were won under energy efficiency frameworks that prevent it from including them in its future three-year revenue forecasts.
The property services company did not receive an anticipated formal bid to acquire the company after the growth equity firm first submitted a non-binding indicative offer last month that valued its share capital at a price of 56p per share, which would represent a 12% premium to its latest recorded share price of 50.45p.
Among Kinovo's recent contracts is an estimated £1 million deal to supply and install air source heat pumps under the government’s Social Housing Decarbonisation Fund that was announced in March.
It also won a direct award worth approximately £4.8 million to provide energy-efficiency retrofits for five housing associations under The Greener Futures Partnership's Decarbonisation Framework.
Kinovo secured a place on three lots in Hyde Group’s Alternative Heating Servicing and Maintenance Services and Metering and Billing Services Framework, which is estimated to have a maximum value of £28 million spread across five contractors over four years.
In addition, the services company won an award notice under Eastern Procurement Ltd.’s Asset Improvement and Sustainability Framework, a development framework that has a maximum aggregate value of £156 million.