The peripherals manufacturer Microvitec Plc, which is rapidly diversifying into networking technology, has made its formal bid for Logitek Plc by making a two-for-three all share offer that values Logitek at UKP5.9m or 33 pence a share. The networking distribution part of Logitek, Azlan, is currently the subject of controversy as it is expected to go in a management buyout, but Microvitec will actively oppose this move at the extraordinary general meeting being held on Friday and urges shareholders to vote against its disposal. Should Azlan be sold then the offer for Logitek will come down to a one-for-one share offer valuing Logitek at UKP3.9m or 22 pence a share. Independent of this proposed acquisition, Microvitec is to stage a rights issue to raise UKP2.5m net of expenses. Under the issue 14.4m new ordinary shares at 19 pence each will be offered in exchange for every two ordinary shares currently held. The issue is being underwritten by Samuel Montagu & Co and the brokers are Henry Cooke Corporate Finance Ltd. Whether or not the bid for Logitek is successful, Microvitec’s board says that the money raised from the issue will be used to eliminate its borrowings and to develop its ISDN and multimedia businesses, thereby securing its future.
