IRISH LISTED e-learning group ThirdForce has moved a step closer to being taken private, after its chief executive Brendan O’Sullivan and chairman Pat McDonagh improved the terms of their bid for the company.
In a statement released yesterday, ThirdForce said LearnVantage Ltd, the bid vehicle being used by Mr O’Sullivan and Mr McDonagh, had raised its cash offer to 10½ cent a share from eight cent previously.
LearnVantage is also offering ThirdForce shareholders the option of swapping their shares for stock in the new company or taking a mix of paper and cash.
“The independent directors have indicated that they are, in principle, supportive of the revised possible cash offer,” ThirdForce stated.
The company, which focuses largely on the corporate market, added that the revised offer was subject to a number of conditions, including the approval of a prospectus of LearnVantage by the Financial Regulator. “There can be no certainty as to whether an offer will ultimately be made on the terms described or at all,” ThirdForce added.
This news failed to support the share price, which closed down 9 per cent at 10 cent.
LearnVantage made its initial approach to ThirdForce on March 30th, offering eight cent a share in cash, or a straight one-for-one swap for stock in the bid company. On April 29th, ThirdForce independent directors – Mike Newton, Carol Clark and Edwin Robinson – said they would not recommend the offer.
ThirdForce released its results for the six months to the end of June 2009. Revenue declined by 11 per cent to €12 million during the period while operating profit fell by 35 per cent to €520,000. “The fall reflects the challenging trading environment of the company’s corporate customers in particular,” the company said.
ThirdForce said it was in a “strong cash position”, with €7.13 million “on hand” at the end of June 2009, compared with €4.49 million a year earlier.
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