Deepverge reports 'multiple approaches' from potential suitors

Deepverge updated the market on progress made in relation to the potential sale of its business units on Wednesday, as well as the current state of its operations.

The AIM-traded firm said following its announcement on 26 June, where it disclosed its intention to explore the sale of one or more of its business units, it had received several approaches regarding the potential sale of either the whole or part of the Modern Water and Labskin business units.

It said the approaches showed multiple indications of interest for specific parts of the business, although all of the approaches were still in their early stages, with no certainty that any of them would result in a transaction.

Additionally, the board said it was possible that the value realised might not be sufficient to prevent the closure or administration of the relevant subsidiaries within the Deepverge group.

Deepverge also updated the market on its ongoing operations, reporting that despite its limited working capital position, the production of Modern Water reagents was continuing.

The company added that it was in discussions to facilitate the installation and commissioning of equipment that had already been delivered.

“A number of activities and discussions, including the joint venture discussions with China Resources for which a memorandum of understanding was initially announced on 28 April 2021, remain on hold, pending the outcome of discussions regarding the sale, closure or administration of the group's subsidiaries,” the board explained in its statement.

“Further updates will be given as appropriate.”

Reporting by Josh White for Sharecast.com.