AIM cash shell Rosebank Industries (LON: ROSE) has ended discussions with Cerberus Capital about the potential acquisition of Electrical Components International Inc (ECI). Rosebank Industries says that there was support for the deal from existing and potential new shareholders it has decided not to go ahead with the deal because of stockmarket volatility.
This is a disappointment for Rosebank Industries, which has been seeking a substantial acquisition that would involve a significant share issue. Trading in the shares will recommence at 7.30am on Wednesday 12 March.
Founders and management of Melrose Industries, one of the four former AIM companies that are constituents of the FTSE 100 index, have set up the investment vehicle to acquire an industrial business. US-based ECI is a supplier of critical electrical distribution systems to a range of industries.
Trading in Rosebank Industries shares was suspended ahead of firm news of a deal. The share price fell 40p to 720p prior to the suspension. Rosebank Industries joined AIM on 11 July 2024 after raising £50m at 250p/share.