Project Panda
In one of several deals involving AIM listed participants, Haslers Corporate Finance LLP (HCF) was lead advisor in respect of a proposed reverse takeover of a significant pharmaceutical distribution business based in the South East.
After several months work, and in the midst of final throws of legal work in preparation of the acquisition and re-admission, tax planning issues led to the deal being aborted by the vendors. The deal was also dramatically affected by the change in Capital Gains Tax leaving just a five day window for the transaction to be completed without major tax cost which, given the nature of an AIM reverse takeover, proved to be not possible.
Meanwhile, HCF´s client was winning considerable new business, hence the deal valuation was beginning to look less attractive and, ultimately, it became in the best interests of the client not to complete the transaction.
Abortive transactions are rarely spoken about but, in reality, there are many significant transactions that are aborted, albeit rarely at such a late stage as Project PANDA.
