Investment firm Novo Tellus’ partial offer for IT equipment seller Procurri Corp has fell through. At the close of the offer period, Novo Tellus received acceptance of just 8.55%.
Combined with shares already held by concerted parties, including Procurri’s management, Novo Tellus controls just 37.37% of the - significantly short of the minimum of 51% needed for the offer to go through.
Five existing Procurri shareholders, including former controlling shareholder DeClout, had over the past couple of weeks openly stated their intention to reject Novo Tellus offer of 36.5 cents per share.
Procurri shareholders who had accepted the offer will have their shares returned.
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According to Novo Tellus, the partial offer was a chance for Procurri shareholders to cash out at a “meaningful” premium, or to hold on for long-term value.
“The structure of the partial offer was selected to allow Procurri to remain publicly listed, enabling shareholders to participate in such long-term value at Procurri,” says Novo Tellus.
“Novo Tellus is pleased that shareholders have exercised their choice and have elected by the majority to continue holding their shares for longer-term value at Procurri. As such, it will continue its constructive partnership with Procurri’s leadership team to build long-term equity value at the company,” it adds.
Procurri closed May 3 at 35 cents. Prior to Novo Tellus’ offer on March 15, Procurri last traded at 27.5 cents.
