Partial offer for Procurri lapses with both thresholds unmet

SINGAPORE (THE BUSINESS TIMES) - Private equity firm Novo Tellus' partial offer to acquire a 51-per-cent stake in IT life-cycle services and data-centre equipment provider Procurri at 36.5 cents per share has lapsed.

The offeror received valid acceptances of about 8.55 per cent of the total shares as at the closing date on Monday (May 3), which would bring its shareholding to just 37.37 per cent.

Only 37.2 per cent of independent shareholders voted in favour of the deal, with the remaining voting against, short of the 50 per cent required to get the deal through.

With both thresholds not crossed, the partial offer has now lapsed, and the offeror concert party group will go back to holding its 28.83 per cent stake after returning the shares to shareholders who have accepted the partial offer.

Novo Tellus reiterated that it believes in the long-term value of Procurri, and that by launching the partial offer, it had aimed to give shareholders a choice to tender their shares for a meaningful cash premium, or to hold their shares for long-term value.

The structure of the partial offer was chosen to enable Procurri to remain publicly listed, enabling shareholders to participate in its long-term value growth.

Last week, substantial shareholder DeClout had voiced its preference for a full offer with a control premium instead, as a partial offer would limit its ability to effect change at the company, since Novo Tellus would own the lion's share.

Novo Tellus said that it is pleased that shareholders have exercised their choice and have elected by majority to continue holding their shares for longer-term value at Procurri.

"As such, (we) will continue (our) constructive partnership with Procurri's leadership team to build long-term equity value at the company."

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