US-based New State Capital withdraws acquisition offer for SG’s Procurri

Marina Bay Sands, Singapore. Photo by Chen Hu on Unsplash

SGX Mainboard-listed enterprise hardware supplier Procurri Corporation on Tuesday announced that private investment firm New State Capital Partners has withdrawn an offer to acquire all the shares of the company.

In an SGX disclosure, Procurri did not provide any reason for the withdrawal but said it was informed by New State about its decision to withdraw its letter of intent (LOI) in relation to the proposed acquisition by way of a scheme.

New State had sent an LOI for the possible acquisition of shares on February 3. Under the terms of the LOI, the consideration for the scheme shares was to be satisfied by cash.

Procurri had earlier said that it had not accepted the LOI and not commenced exclusive discussions with New State, a private investment firm which operates in the United States and focuses on investments in business, healthcare, and industrial services industries.

Last week, Procurri had announced that another investor had decided to terminate further discussions for a possible acquisition. The unnamed company had sent an unsolicited, non-binding expression of interest.

New State’s withdrawal comes as Singapore Catalist-listed DeClout entered into an agreement to sell its 36.3 million shares in Procurri Corporation to private equity firm Novo Tellus Capital Partners.

Procurri is 47 per cent owned by DeClout.

The shares were sold by DeCLout at S$0.33 per share, payable in cash by Novo Tellus. DeClout, which will raise S$12 million ($8.8 million) through the sale, plans to use the proceeds to repay the company’s external borrowings of up to S$4.2 million and use the remaining S$7.8 million to fund M&A activities.

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