Public takeovers can sometimes take much longer than anticipated, even for relatively simple deals where no competition issues exist.
Unfortunately this has been the case for Belluscura's proposed acquisition of TMT Acquisition (£4.7m cash shell) for £5.8m in stock, which was first announced on October 25, 2023.
The good news is that today, the formal Offer Document will be posted shortly to TMT shareholders, and remain open for acceptance until 1 pm on March 19, 2024. Albeit in light of the intervening period, the terms of the deal have been reset to a '1-for-1' share swap (i.e. BELL:TMTA) compared to 3:4 that was originally agreed.
Nonetheless, once closed the transaction should provide sufficient capital for the enlarged group to become self-financing.
Also importantly, demand continues to be strong for Belluscura's leading X-PLOR and next generation DISCOV-R portable oxygen concentrators (POC), especially across North America and Asia. In particular, China is the world's largest COPD market with almost 100m sufferers.
Elsewhere the acquisition also enables Chinese manufacturing partner Innomax to kick off production of the devices, alongside paying a minimum royalty and percentage of the profits on future sales. The AsiaPac POC sector is forecast to climb to almost $1bn over the next 6 years.
But that's not all. A newly designed aluminium sieve should also result in a longer usable product life, lower input costs, and importantly a 50% increase in gross margin.
Watch this space.
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