The Berklee factory
BALLARAT exhaust manufacturer Berklee has received new interest from parties wanting to buy into the company.
It comes after a proposed takeover bid fell through last month, casting the Ballarat company’s future viability into question.
Berklee, an automotive exhaust manufacturer with about 28 staff in Ballarat, recorded a loss of $2,149,000 in 2012, following a loss of $2,228,000 in 2011.
A bid group associated with Rick van Berkel, a non-executive director of the company, had proposed last year to acquire all shares not already held by the group.
But its bid was withdrawn on the grounds several conditions had not been met.
The group had not been able to raise the finance to acquire the shares and the financial performance of the company continued to deteriorate, it claimed.
The board’s only option was to consider a proposal by Berklee managing director and secretary Brett Jones to “take over the supply and distribution of the Berklee product, intellectual property and exhaust inventory”.
But in a new development, chairman Alan Beckett has advised the ASX of a last-minute proposal received from other parties.
“Berklee advises that by the close of business of Friday, 15 February, 2013, it was in receipt of additional proposals from parties interested in acquiring certain assets of the company,” Mr Beckett said.
He said a sub committee would now “evaluate the proposals and negotiate with the parties to endeavour to obtain the most favourable outcome for shareholders”.
Mr Beckett said the automotive parts and accessories manufacturing industry continued to encounter many challenges, in his address to the company’s 2012 annual general meeting.
rachel.afflick@fairfaxmedia.com.au