Investment company One51 has been granted an extension to decide whether or not it intends to make an offer to buy bin manufacturing company Straight plc.
Straight plc announced on the London Stock Exchange last month (14 February) that it had received a ‘preliminary approach’ from Dublin-based One51 – which already owns Irish resource management company ClearCircle Environmental and wheeled bin manufacturer MGB Plastics – regarding a ‘possible acquisition of the entire issued and to be issued share capital of Straight’.
However, Straight said there was ‘no certainty’ that this approach will lead to an offer being made for the company.
One51 had until 5pm on 14 March to either announce a ‘firm intention’ to make an offer for Straight, or that it did not intend to buy it. But, after the Straight Board requested an extension to this deadline, the company now has until 5pm on 11 April 2014 to make a decision.
Straight said it will remain in ‘offer discussions’ with One51 until the end of the newly-extended deadline.
According to Straight, the company is currently growing ‘in line with market expectations’, and has recently been reappointed by the Eastern Shires Purchasing Organisation (ESPO) and the Central Buying Consortium (CBC) to supply a range of waste container products under a two-year framework agreement (with the option to extend for a further two years).
The four-year agreement, which began on 1 February, is estimated to be worth up to £100 million. Straight said it expects to generate at least £4 million of annual revenues in line with previous levels achieved from this channel.
Read more about Straight plc and One51.
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