LONDON - Equipmake Holdings PLC, an engineering company specializing in electrification technologies for vehicles, announced today the initiation of a strategic review and formal sale process while disclosing updates on a potential licensing agreement. The company, which caters to the automotive, truck, bus, and specialty vehicle industries, is considering a range of options to enhance shareholder value due to limited cash resources.
Equipmake reported ongoing discussions with a major automotive supplier to license its functional safety technology and systems integration capability, which could result in milestone payments totaling $6 million over two years, in addition to future volume-based royalties. However, there is no confirmation on when or if this potential license agreement will be finalized.
The company's board has decided to explore strategic alternatives, including raising additional equity capital, finding a strategic partner, or potentially selling the company or merging with another entity. This review will be conducted under the framework of a "Formal Sale Process" in accordance with the Takeover Code.
As of today, Equipmake's cash balances stand at approximately £1.9 million, with no debt other than some equipment finance lease agreements. The board anticipates that, without the licensing deal, the company's cash resources will last until around March 2025.
PwC has been appointed as the joint financial adviser to assist with the formal sale process. Interested parties are invited to express their interest through PwC. The company will provide information to these parties, who will then be asked to submit their proposals.
The company has emphasized that there is no certainty of any offer being made as a result of the formal sale process, nor the terms of any potential offer, sale, strategic investment, or other transactions. Equipmake is now in an "offer period" as per the Takeover Code, and dealing disclosure requirements are in effect.
Further updates on the progress of the formal sale process and the outcome of the strategic review will be announced in due course. This announcement is based on a press release statement from Equipmake Holdings PLC.
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