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Keensight Capital Abandons NIOX Group Takeover Bid Amidst Market Uncertainty
Private equity firm Keensight Capital has announced its decision to retract its proposed acquisition bid for NIOX Group, citing escalating market turmoil and economic headwinds. The withdrawal of the takeover offer for NIOX Group, a specialist in healthcare and technology, comes as global markets grapple with volatility, exacerbated by recent tariff announcements.
Market Volatility Triggers Bid Withdrawal
Keensight Capital, a specialist investment firm focused on healthcare and technology sectors with approximately €5.5 billion in assets under management as of last December, attributed its decision to abandon the NIOX Group deal to the prevailing ‘current macro-economic climate’. This backdrop of economic uncertainty has deterred the firm from proceeding with the acquisition.
Impact of Trade Tariffs on Market Conditions
The decision follows a period of considerable market turmoil in the preceding week, largely sparked by the introduction of tariffs by President Trump. These measures include a 10 percent baseline tariff on all US goods imports, alongside ‘reciprocal’ tariffs targeting numerous nations. Notably, tariffs of 20 percent were proposed on products from the European Union and 34 percent on imported Chinese goods.
While President Trump declared a temporary suspension of these elevated tariffs for 90 days, duties on products originating from China have been significantly increased to 145 percent. These trade policy shifts have contributed to the current volatile economic landscape.
NIOX Group Reacts to Keensight’s Decision
NIOX Group had previously confirmed on March 20th that Keensight Capital had submitted an offer of 81 pence per share for the company two weeks prior. NIOX indicated that its management was prepared to recommend the deal, contingent on Keensight submitting a definitive proposal by 5pm on April 17th.
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Following Keensight’s withdrawal, NIOX Group has declared the immediate cessation of its private sale process. The company stated that continuing the process was ‘unlikely to produce an optimal outcome for shareholders’ in light of the current circumstances.
Share Price Decline for NIOX Group
The announcement of the bid withdrawal triggered a sharp decline in NIOX Group’s share value. Shares plummeted by 20.45 percent to 56 pence in late Friday afternoon trading, positioning NIOX as one of the most significant decliners on the AIM All-Share Index.
Company Profile: NIOX Group and Financial Performance
Established in 2006 as Circassia Group, NIOX Group specializes in developing products for individuals with asthma, including FeNO testing monitors. In the past year, the company experienced a 16 percent revenue increase on a constant currency basis, reaching £41.8 million. This growth was driven by heightened demand from healthcare professionals and hospitals for clinical applications.
Trading performance also benefited from a surge in research sales, which grew by over 30 percent, and a rise in testing volumes, increasing by one million to 6.3 million. Consequently, NIOX Group’s pre-tax profits nearly doubled from £4.1 million to £7.8 million. However, due to deferred tax expenses, overall profits decreased by £7 million to £3.7 million.