ON’S fire engine supplier AssetCo is in exclusive sale talks with Bahraini banking group Arcapita over a 2p-per-share offer, City A.M. has learned.
AssetCo is racing against time to finalise a deal with Arcapita to fend off bankruptcy as it has accumulated debts of between £117 and £140m. It faces a court hearing today to place it in administration but is likely to win a short extension to allow it to complete the last-ditch takeover talks.
The offer is Arcapita’s third attempt to buy AssetCo in less than a year. Both its previous 80p-per-share and 14p per share bids were rejected by the board, which opted to raise £16m in March through a share placement to a small group of its investors at 10p per share instead.
City A.M. understands investors are furious that their investments have been wiped out within four months.