Proactive Investors - Run By Investors For Investors

Carclo shares plunge as Consort Medical withdraws from offer process

Carclo had previously rejected a non-binding offer from Consort in early July, saying the offer of 116p per share “in no way reflected the fundamental value of the company”
Share price drop
Carclo's shares dropped over 20% in late-morning trading

Carclo PLC (LON:CAR) shares plunged in late-morning trading Tuesday after Consort Medical PLC (LON:CSRT) confirmed it was withdrawing from making an offer for the firm.

Carclo, a technical plastics manufacturer, had previously rejected a non-binding offer from Consort, a medical devices maker, in early July, saying the offer of 116p per share “in no way reflected the fundamental value of the company”.

READ: Carclo shares jump after rejecting a 116p a share takeover approach from Consort Medical

In its announcement of the withdrawal, Consort said that following meetings between the two companies, it had determined that “proposed transaction would not deliver the required benefits in a reasonable timeframe and it is therefore not in the interests of its shareholders to continue”.

In response, Carclo said it was “highly confident” in its prospects and standalone strategy, however investors appeared to disagree, with the shares falling 22.2% to 91.4p, 21% below Consort’s offer price.

Carclo has also not seen the greatest run of financial news, with its final results for last year recording a fall in pre-tax profits to £9.9mln from £12mln despite a rise in revenues to £146.2mln from £138.2mln, due partly to unexpected delays in securing big contracts in its Technical Plastics and Wipac units.

View full CAR profile View Profile

Carclo Timeline

Newswire
May 16 2016

Related Articles

broken cell phones
October 02 2018
Mineworx Technologies offers a cost-effective, environmentally friendly alternative in extracting precious metals for the mining and E-waste sectors
Atlas Engineered worker
June 05 2019
The company specialises in the manufacture and supply of roof trusses and wood products

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use