North East offshore engineering firm Tekmar has further extended an exclusivity period with a potential investor it has been negotiating with as part of a rescue process.
The Darlington firm announced last November it was in talks with a company described as “a global institutional investor in the energy sector”. It is hoped the potential bidder would offer investment, after Tekmar essentially put itself up for sale in July as it did not have enough cash to turn around a loss making position.
An exclusivity period with its preferred partner was extended in January and now it has been pushed back again, this time until the end of March to allow the potential bidder to finalise its proposal.
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Tekmar said the proposed deal would not involve a sale but would represent new capital investment. If successful, the deal would mean Tekmar was still traded on the AIM market.
In an update to the market, Tekmar said: “The exclusivity period relates only to alternate debt or equity financing proposals and, for the avoidance of doubt, does not prevent an offer being made for the company by a third party under the framework of the company’s formal sale process.
“There is no guarantee that this proposal will be completed, and further announcements will be made as required. If the proposal is successfully completed, then this will conclude the company’s strategic review and formal sale process.”
Despite its finanial troubles, Tekmar has announced a number of contract wins in recent months, including deals in January worth a combined £10m for its cable protection products and deck equipment.
The firm said that its Pipeshield International Limited and Subsea Innovation Limited businesses would deliver the contracts, which include work in the Middle East, and an order for a launch and recovery system.
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