Company announced that a preferred bidder had been found and exclusivity agreement entered
Companies: Flow Traders Ltd
Shares in AIM-listed Flow Group jumped 33% in early trading on Tuesday after the company announced that it had received a "number" of indicative offers for the Flow Energy division of the Group, and had agreed a preferred bidder.
On 8 February, the Company told investors it was actively pursuing the sale of the division, and has now revealed that the Board has selected a preferred bidder and has entered into an exclusivity agreement with the party.
For an agreement to be reached there is probably a premium to the offer, but the update gives no indication of the value of any offer, so the huge increase in share price may be premature. The company also made no guarantee that the sale would complete with the party mentioned:
"...there can be no guarantee that the sale of Flow Energy Limited will complete with this party, or that the sale of Flow Energy Limited will complete at all, the Company expects to make a further announcement in the coming weeks. Any disposal would be conditional on shareholder approval."
The Board added that it would continue to consider alternative funding options if the disposal of Flow Energy should not go through.
