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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.

Quick facts: Carclo

Price: 10.7 GBX

LSE:CAR
Market: LSE
Market Cap: £7.86 m
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