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CentralNic confirms in talks on potential combination with Luxembourg-based KeyDrive; shares temporarily suspended

The AIM-listed group said it currently anticipates the transaction will be completed in the second quarter of 2018. Discussions still ongoing and there can be no certainty that a transaction will occur

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If the deal proceeds it will constitute a reverse takeover by CentralNic, accordingly trading in the group’s shares have been suspended on AIM with immediate effect

CentralNic Group PLC (LON:CNIC) has confirmed that discussions are taking place regarding the potential combination of the AIM-listed firm and Luxembourg-based KeyDrive S.A. and its subsidiaries including leading domain reseller platforms and the corporate registrar BrandShelter.

In a statement noting industry speculation, the domain names and services group said the two firm’s boards “believe that the combination of the two businesses would have strong strategic logic and economies of scale, and would represent an opportunity to create a group with advanced technology platforms delivering significant recurring revenues for every major customer type within the industry.“

READ: CentralNic's acquisition strategy augmenting its growth surge

CentralNic added that it currently anticipates the transaction will be completed in the second quarter of 2018, although with discussions still ongoing and there can be no certainty that a transaction will occur. 

If the deal proceeds, the firm said, it will constitute a reverse takeover by CentralNic, accordingly, trading in the group’s shares have been suspended on AIM with immediate effect.

The group added that a further announcement will be made when appropriate.

Quick facts: Centralnic Group PLC

Price: 91 GBX

LSE:CNIC
Market: LSE
Market Cap: £168.99 m
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