Bakery firm McCambridge is exploring means of reviving its approach for troubled British cake-maker Inter Link after dis-agreement over a debt writedown culminated in the withdrawal of its bid.
Inter Link called for the suspension of its shares on the Alternative Investment Market (AIM) in London early yesterday, pending clarification of its financial position. The company, in which McCambridge has built up a stake of almost 9 per cent, has debts of some £63.7 million (€94.5 million).
The shares were suspended at 106½p, implying a market capitalisation of £12.26 million on Inter Link. While the stock traded as high as 499p last October, the company faces a loss this year and is struggling to pay its debts.
Inter Link said yesterday McCambridge submitted an amended indicative offer with a pre-condition that its bankers would have to "compromise" their position.
"The bank formally advised the company on Friday that it would not agree to this pre-condition. As a result, McCambridge have informed the company that they cannot proceed with their revised indicative offer."
McCambridge dismissed the suggestion that there was anything unusual in its dialogue with Inter Link's banks, stating that its requests were in line with standard due diligence procedure. "They are actively looking to buy the business," a spokesman said.
Controlled by Michael McCambridge, grandson of the founder of the business, it has annual sales of £32 million and around 1,000 staff. Irish-owned but run by an unlisted UK plc, the company has made 10 acquisitions in Ireland and the UK since 1999.
Inter Link said it had received no other buyout proposals "without a similar precondition" on its banks. While stating early yesterday that discussions on a sale continue with a number of parties, the company later issued a statement in which it said there were "presently no proposals available to or under consideration by the company that may lead to an offer being made".
Inter Link chairman Jeremy Hamer has indicated that its debts would have to come down to ensure the viability of the business, even if there was no sale.
The company said yesterday its banker continues to support its trading requirements while sale opportunities are explored. It said it met its sales budget in May and is optimistic about finding a solution to retain jobs.
