Tecnotree recommends buyout offer from Viking Acquisitions

Thursday 8 March 2018 | 12:00 CET | News

Finnish communications software company Tecnotree said its directors are recommending a takeover bid by Viking Acquisitions. Viking will make a voluntary EUR 0.10 per share public cash tender offer on or about 16 March to buy all of the issued and outstanding stock in Tecnotree. This values Tecnotree at approximately EUR 12.26 million on a fully diluted basis.

Holders of approximately 41.45 percent of the shares in Tecnotree, have irrevocably undertaken to accept the offer. The price is some 26.6 percent higher than the closing price on Nasdaq Helsinki on 07 March 2018, which was the last day of trading before the announcement. It is also 28.1 percent higher than the three-month volume weighted average price, and 18.8 percent higher than the twelve-month volume weighted average price.

The offer is subject to regulatory approvals and to Viking getting control of more than 90 percent of the outstanding shares and voting rights in Tecnotree. The offer is expected to begin on or about 19 March and run for around four weeks.

Viking is offering this price on the grounds that the liquidity and cash position of Tecnotree are extremely challenging and Tecnotree has significant uncertainty about the continuity of its operations. Tecnotree’s ability as a going concern is dependent on the successful completion of getting new financing. Harri Koponen, chairman of the board of directors of Tecnotree, said the board considers that the Viking offer provides a good and durable solution for Tecnotree’s financing need.

Padma Ravichander, CEO of Tecnotree, said its 2017 results show that it is already on a strong path towards profitability. Viking and its affiliates have extensive experience in acquiring, stabilising and growing international software companies, so she is confident that Viking’s involvement and support will enable Tecnotree to achieve financial stability and to serve its customers even better.

Viking Acquisitions president Mike Shinya said Viking and its affiliates “passionately” believe that there is long term, sustainable and profitable future for Tecnotree. Viking is wholly owned and controlled by Joseph Liemandt, a US private individual.

Tecnotree added that it is postponing its Annual General Meeting (AGM) until 30 May from 26 April, and that its short report for the first quarter of 2018 will now appear on 28 May instead of 26 April.

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