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23 Sep 2008
Pan-European components distributor Abacus Group is holding talks with potential buyers after suffering a downturn in sales.
The London-listed distributor admits it has recently encountered “challenging” trading conditions and is keen to find a buyer after concluding its share price is not a true reflection of its business value.
Lower than anticipated sales volumes in the summer months have failed to pick up in September, it added.
Further reading
The distributor concluded that shareholder value would best be served by entering discussions with a number of firms that have approached it with acquisition proposals. HSBC has been appointed as a financial advisor.
“The Board of Abacus now considers it appropriate to inform shareholders that, as a result of this process, it has received a number of proposals, which may or may not lead to an offer being made for the company,” the firm said in a statement.
“The Board emphasises that all proposals remain subject to a number of conditions, including due diligence and as such there can be no certainty that an offer will be forthcoming.”
Abacus Group employs 1,100 staff in 11 countries. The firm works in the fields of electronic component distribution, own brand product, specialist distribution of displays, embedded computing and wireless communications, and value added services.
For the six months to March, Abacus saw underlying pre-tax profit fall from £6.8m to £4.5m year on year, while sales fell 6.4 per cent to £139.1m.
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