Keybridge ditches takeover of underperforming Yowie
3 May 2019, Written by Business News Australia
Keybridge (ASX:KBC) has decided to not proceed with its proposed takeover of confectionary company Yowie (ASX:YOW).
The company says that after considering Yowie's quarterly cashflow report, which Keybridge described as "disappointing", it will not pursue the takeover.
Yowie reported a significant operating loss, a nearly 50 per cent decline in operating revenue from the previous quarter, and a decline in the cash position of the company from the beginning of the quarter of US$18.751 million to US$16.982 million.
This announcement spells the end of Keybridge's proposed takeover of the Australian chocolate group.
The initial takeover of Yowie was worth $20 million.
Keybridge intended to take over Yowie in order to "exert material influence" and appoint new directors to steer the Yowie ship.
Shares in Yowie are down 4.22 per cent to $0.07 per share at 10.48am AEST.
Business News Australia
Author: Business News Australia