- Markets have endured massive turmoil over the last week due to Trump’s tariffs
Private equity firm Keensight Capital has revealed that it will not make a takeover offer for NIOX Group.
The specialist healthcare and technology investor, which had around €5.5billion in assets under management as of last December, blamed the ‘current macro-economic backdrop.’
Markets have endured massive turmoil over the last week following President Donald Trump’s implementation of a 10 per cent baseline tariff on all US goods imports.
He also announced ‘reciprocal’ tariffs on dozens of countries, including a 20 per cent levy on products from the European Union and a 34 per cent tax on imported Chinese goods.
While Trump declared a pause on almost all these elevated tariffs for 90 days, he has increased duties on Chinese-made products to a staggering 145 per cent.
NIOX confirmed on 20 March that Keensight had put forward an 81 pence per share bid for the company a fortnight previously.
Medical issues: Founded in 2006, NIOX focuses on making products for people with asthma
Bosses at the group said they would be ‘minded to recommend’ the deal if Keensight were to make such a concrete proposal by 5pm on 17 April.
Now that Keensight has pulled out, NIOX has decided to discontinue the private sale process with immediate effect, claiming it was ‘unlikely to yield an optimal outcome for shareholders.’
Following the announcement, NIOX Group shares dived 20.45 per cent to 56p by late Friday afternoon, making them one of the AIM All-Share Index’s ten biggest fallers.
Founded in 2006 as Circassia Group, NIOX focuses on making products for people with asthma, such as FeNO testing monitors.
Last year, the firm’s turnover expanded by 16 per cent on a constant currency basis to £41.8million, supported by higher demand from physicians and hospitals for use in clinical practices.
Trading also benefited from research sales soaring by more than a third and testing volumes jumping by 1 million to 6.3 million.
As a result, its pre-tax profits nearly doubled from £4.1million to £7.8million, although due to deferred tax charges, the firm’s overall profits fell by £7million to £3.7million.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .