Date: Tuesday 26 May 2015
LONDON (ShareCast) - Heating products company Inditherm has proposed a reverse takeover of Inspiration Healthcare's medical device distribution, as well as a name-change to Inspiration Healthcare Group and a share consolidation.
Under the proposals, every ten existing ordinary shares would be consolidated into one new share, after which Inspiration Healthcare's vendors will receive 25.56m new shares representing 83.3% of the company's enlarged share capital, as consideration for the reverse takeover.
The takeover panel has offered to waive the UK takeover code's obligation to make a mandatory offer to all shareholders to acquire their ordinary shares, providing the reverse takeover is approved.
Inspiration will then apply for AIM admission - it provisionally expects the enlarged group to be admitted by 24 June.
The proposals will be discussed at the company's general meeting on 23 June. The independent directors have encouraged shareholders to vote in favour of the proposals.
"We have believed for some time that there is underlying value in Inditherm, but the combination of small scale and overhead costs have been a constraint," said Inditherm chairman Mark Abrahams in a statement.
"This transaction has the potential to unlock shareholder value and represents an excellent outcome to our review of strategic options which we have undertaken over the last year," he added.
As of 11:30 BST, shares in Inditherm were trading 63.64% higher at 4.5p.
