UNDER PRESSURE DANKA CHANGES TERMS OF SALE TO KONICA MINOLTA

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UNDER PRESSURE DANKA CHANGES TERMS OF SALE TO KONICA MINOLTA

 user 2008-06-24 at 3:59:47 pm Views: 51
  • #20005

    http://www.bizjournals.com/tampabay/stories/2008/06/16/daily31.html?jst=b_ln_hl
    Danka Business Systems changes terms of proposed sale to Konica Minolta
    Bowing to investor pressure, Danka Business Systems PLC said it would change the terms of the planned sale of its U.S. operating subsidiary to Konica Minolta Business Solutions U.S.A. Inc.An amended version of the plan will allow shareholders to approve the proposed sales regardless of a separate proposal to conduct a voluntary liquidation of the parent company, according to a release from Danka , a London company whose U.S. operations are based in St. Petersburg.

    The changes were made in response to recent statements by a number of the holders of Danka’s American Depository Shares, the company said. Those shareholders, including Ironwood Investment Management LLC in Boston and DCML LLC in New York, said they supported the planned $240 million sale of Danka Office Imaging Co., but did not support the liquidation as proposed.Danka’s board of directors determined it was in the best interest of Danka and its shareholders to no longer condition completion of the sale upon shareholders approval of the liquidation, and that completing the sale of Danka Office Imaging to Konica Minolta in a timely manner is of paramount importance, the release said. The sale is due to close by June 30, three days after shareholders meet to vote on the liquidation.Under the original plan, the company would have used the sale proceeds to repay all of its outstanding debt, then distribute remaining proceeds to shareholders. Holders of American Depository Shares were in line for 10 cents a share, a fraction of the amount that would have been received by the company’s largest shareholder, Cypress Merchant Banking Partners II LP.The Danka release did not address what changes, if any, are expected in the distribution of proceeds under the revised plan.