Cash shell Pristine Capital PLC on Friday said it will no longer be pursuing a planned acquisition and added that it will be taking legal advice after accusing one of its investors of a confidentiality breach.
The firm back in June announced the planned buy of a regional property portfolio for around £20 million. The property portfolio, which comprises three office properties that are all located more than 125 miles from London, is income-generating and let to high-quality tenants.
Pristine Capital said it has been working ‘diligently’ in recent months to seal the buy, which hinged on the firm raising some £10 million.
‘Whilst initially challenging, the company ultimately received indications of support which the directors believe would have been sufficient to raise all the funds required to complete the fundraise. However, the company has now concluded that the vendor no longer wishes to sell the property portfolio to Pristine,’ the firm said.
The firm said it now understands that one proposed investor in the fundraise, which Pristine had ‘detailed and strictly confidential discussions’ with, approached the seller of the portfolio directly.
The investor submitted to the seller a proposal to buy the portfolio ‘for a significantly greater amount than the proposed acquisition price’ by Pristine.
‘The directors of Pristine have taken legal advice and intend to take all legal steps necessary to protect Pristine against what appears to have been a breach of commercial confidentiality, including commencing High Court proceedings, if appropriate. As a result of the above, the company will not be proceeding with the proposed acquisition and will not be seeking a transfer of the ordinary shares of Pristine to trading on AIM,’ Pristine added.
It will remain on the Main Market and has requested that its shares remain suspended.
‘The company is now reviewing its financial position in the light of these events, in view of the potential abortive fees of the transaction and ongoing costs and will be having discussions with its shareholders in regard to the funding of potential legal costs. There have been preliminary indications of support for raising further equity from certain existing shareholders and supporters of the company,’ Pristine said.
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