Screen Technology - how did Wilden get out of the deal
Following on from my previous comments on Screen Technology one wonders how Wilden managed to extricate themselves from an 'agreement' to provide finance, notwithstanding their acquisition.
Clearly there was never a binding commercial agreement to provide finance and the announcement on 27th Sept 2006 only refers to 'letters of intent.'
Wilden apparently started dragging their feet in November when they were already in discussions with Gerresheimer and were not in a position to sign up to anything at this time.
Clearly there was never a binding commercial agreement to provide finance and the announcement on 27th Sept 2006 only refers to 'letters of intent.'
Wilden apparently started dragging their feet in November when they were already in discussions with Gerresheimer and were not in a position to sign up to anything at this time.
However, the tone of that RNS was unreservedly bullish ("Wilden will ..." do this, and that, etc.) and the market's reaction was very positive, too.
An unintended consequence was that the lack of a formal signing was no doubt leaking out gradually, with quite a volume of informed selling before the announcemnt last week that the deal was off.
As for Screen Tech's alternative source of finance, MTI with their large holding are hardly in a position to abandon them. Terms may, of course, be dilutive for existing holders.
Perhaps the chief risk is that the order pipeline will reduce; this is the second delay, after all.