Touchstar board to conduct strategic review

26th Sep 2024 10:32

(Sharecast News) - Touchstar announced on Thursday that its board would conduct a strategic review to explore various options for future growth and value creation for shareholders.

The AIM-traded firm said the review would assess potential paths, including a possible sale of the company, its assets, or other strategic transactions.

It said the decision followed several informal approaches received over time regarding potential mergers, alliances, or sales of parts of the business.

The board said it believed it was in the best interest of shareholders to consider those options more formally to ensure that the company's value, growth potential, and operational success were fully reflected.

Touchstar, a supplier of mobile data computing solutions and managed services across various industrial sectors, said it had demonstrated strong earnings quality, significant growth potential, and a solid track record of cash generation.

The company said it continued to invest in support of its long-term growth strategy and remains optimistic about its future prospects.

Currently, Touchstar was not in talks with any potential buyers, and there were no ongoing negotiations regarding a sale.

The company emphasised that there was no certainty that any transaction would result from the review, nor what the terms of any such transaction could be.

Zeus Capital was serving as lead financial adviser, nominated adviser, and broker to Touchstar in connection with the strategic review.

The company said it was now in an "offer period" under the Takeover Code.

At 1334 BST, shares in Touchstar were up 3.22% at 105.8p.

Reporting by Josh White for Sharecast.com.