US-based New State Capital signals intent to make offer for Procurri

Singapore

ENTERPRISE hardware supplier Procurri Corporation on Monday named its offeror, saying it had received a non-binding letter of intent (LOI) from New State Capital Partners for the proposed acquisition of all the shares of the company, other than treasury shares and shares held by substantial shareholder Irrucorp, via a scheme of arrangement.

"The company wishes to highlight to its shareholders that it has not accepted the LOI and therefore has not commenced exclusive discussions with New State in relation to the proposed acquisition," it said.

New State is a private investment firm which operates in the United States and focuses on investments in business, healthcare and industrial services industries.

Irrucorp, in which Procurri chairman and global CEO Sean Murphy and executive director and global president Edward Flachbarth are deemed to have interests, owns about 12.03 per cent in the company as at March 16, 2018, according to Procurri's 2017 annual report.

Under the terms of the LOI, the consideration for the scheme shares will be satisfied by cash. The signing of a definitive agreement is also subject to the undertakings from certain company shareholders to vote in favour of the scheme. Completion of the acquisition is also conditional on New State's due diligence, Singapore regulatory approvals and certain waivers from the authorities.

Procurri had said last September that it had received an unsolicited, non-binding indication of interest from a third party to acquire shares in the company through a possible voluntary general offer.

Thereafter, it updated in January 2019 that the interested third party was still doing due diligence checks and still considering making the offer and the various avenues of carrying out the possible transaction.

Procurri shares added half a cent or 1.6 per cent to S$0.31 on Monday.