Consortium "planning takeover" at Victoria
A former director of Kidderminster-based floor coverings business Victoria may be planning to launch a hostile takeover bid for the company. Alexander Anton is behind what could be an "imminent" bid, the business told shareholders.
In the statement, Victoria said that "a consortium is possibly about to requisition the board", seeking the replacement of all of the company’s independent non-executive directors and replacing them with its own preferred candidates.
If this were successful, says Victoria, then the consortium’s own preferred candidates would represent a majority of the board and therefore control the day-to-day management of the company.
The company said it was not aware of any timescale, nor has it received any requisition, but wants to avoid a false bidding war amongst its own shares.
The statement read: "The board is currently unaware as to when the requisition may be forthcoming, but indications received lead the board to assume this may be imminently."
Victoria said Anton, a past director of the company, is part of the consortium behind the planned takeover.
"We strongly believe this action is both without merit and an unwelcome distraction for the operational management team and the business as a whole," added the statement.
The floor covering company said it believed the action was "both without merit and an unwelcome distraction" for the operational management team and the business as a whole.
"Therefore, at this stage, shareholders are strongly advised by the board to take no action and await further updates from the board in due course," it concluded.
Victoria returned to the black in its latest financial accounts, which were unveiled last month (November).
In a statement to the Stock Exchange, Victoria said profits for the second half of the year to 1 October 2011 were up by 80 per cent to £1.4m. Revenues also rose by 17.1 per cent to £39m.
On the back of the results Victoria announced plans to add to its range by launching a new division, Victoria Luxury Flooring.
