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In March London Forfaiting Company (LFC) announced that it intended to make a definitive announcement regarding the sale process by June 30. So, the company has issued a statement saying that on June 13 it entered into an exclusivity arrangement with a potential bidder. This arrangement provided for a period of exclusivity up to <

  • xml:namespace prefix = st1 /> 5pm on June 27, by which time the counterparty was required to announce an offer, failing which exclusivity would lapse.

    The exclusivity agreement was entered into on the basis of an indicative offer price of 29.5 pence per share in cash. Such an offer, if made, would value LFC at about £31mn. The proposed offer is subject to a number of pre-conditions including confirmatory due diligence, the recommendation of the board and support from certain of the company’s larger shareholders.

    The counterparty concerned has requested that the exclusivity agreement be extended until 5pm on July 4. LFC has agreed to this extension on the basis that the counterparty continues to be interested in making an offer at 29.5 pence per share in cash and that the counterparty expects to announce firm proposals by the date to which exclusivity has been extended.

    LFC emphasises that no formal offer has at this stage been made and there can be no certainty that such a firm offer will be made, even in the event that the preconditions are satisfied or waived.

    “The counterparty, which is a financial institution, has requested not to be named in this announcement. The counterparty’s financial adviser has reviewed this announcement. A further announcement will be made as soon as practicable,” says an LFC statement.