On 16 April 2020, Medserv plc announced that due to the current ‘COVID-19’ pandemic, the conditional framework agreement between its two major shareholders and AMT S.A. stipulating the intended share for share exchange and launch of a voluntary offer has been aborted. Medserv added that the decision not to proceed was reached by both parties on an amicable basis and a termination agreement to this effect has also been concluded.
The two major shareholders explained that the transaction was terminated for reasons outside of the parties’ control and that for this reason, they will embark on a series of discussions with AMT S.A. to determine whether there is still scope for a transaction to take place between the parties. They also added that their intent remains to source a strategic purchaser to acquire their shareholding in Medserv and to accelerate and further supplement the company’s growth and internationalisation strategy.
Meanwhile, Medserv noted that although this development is likely to impact the speed at which it can expand, it will nonetheless continue to explore opportunities in a sustainable manner. In fact, existing business pipeline has been retained, although some offshore exploration projects have been postponed, whilst the Middle East operations is continuing to perform regularly. Moreover, in view of the ‘COVID-19’ pandemic, Medserv has put into place cost cutting measures whilst it will also benefit from the varying schemes adopted by governments to mitigate the significant economic and financial fallout from the ‘COVID-19’.
Medserv concluded by reiterating that it has sufficient resources and funds to meet all its financial obligations for 2020.