Intertain moves to dampen acquisition rumours
Toronto-based firm responds to market speculation linking it with an imminent acquisition
The Intertain Group has moved to dampen speculation linking it with an imminent acquisition after the company’s share price increased almost 16% since Monday.
In statement issued to the market on Friday, the Toronto-listed firm said it was responding to “market rumours that have come to the company’s attention regarding a potential strategic acquisition”.
“Intertain regularly evaluates potential acquisition opportunities,” Intertain said in the statement.
“From time to time, this process leads to discussions with potential acquisition targets. There can be no assurance that any such discussions will ultimately lead to a transaction.”
The firm said that as a general rule it did not comment on potential acquisitions until a “legal binding agreement has been signed” or “material terms of the transaction have been settled”.
“The company intends to make no further comment or release regarding current market rumours unless and until such comment is warranted,” the statement added.
Since its formation at the beginning of the year, Intertain has completed a number of high-profile acquisitions, including a £60m takeover of Mandalay Media, while last month the firm revealed it entered a nonbinding letter of intent to purchase online casino operator Vera&John for up to €89m.
Intertain’s share price had risen to CA$17.70 earlier today, but since issuing its statement has fallen to $16.86 at the time of writing.