Eve and Simba look to merger
Loss making mattress in a box firms Eve and Simba have begun merger talks.
Eve told shareholders that the deal would be structured so it acquired Simba. However it has suspended its shares on AIM as it cannot yet determine if it would be a reverse takeover. This would require the publication of an admission document and a general meeting: something it is not in a position to do.
It warned that the talks could break down. ‘There can be no certainty that the potential transaction will proceed orcertainty as tothe terms ofthe potential transaction.’
Eve reduced losses from £11.9m to £5.9m in the first half of this year after restricting operations to the UK, Republic of Ireland and France. Simba secured funding in February but saw its value slashed from £200m to £20m.
Eve’s share price peaked at 130p in December 2017 but was at 4.9p before it was suspended.