Synchronia NewsSynchronica to meet bidder after fund raising plans stall
Friday, March 02, 2012 by Philip Whiterow
Mobile messaging group Synchronica (, TSE:SYN) has dropped plans to raise up to £6.5 million through an investment from new Canadian partner Intertainment Media.
The fund raising was a major plank of its defence strategy against a takeover bid from Swiss rival Myriad and Synchronica said its board is now considering its previous advice to reject the offer.
Directors will meet with Myriad today, with the Intertainment decision to be a “key consideration for the Board in deciding upon what advice to provide to shareholders,” a statement said.
Synchronica bought Nokia’s operator branded messaging business in July of last year.
According to Synchronica, the agreement contained a clause that provided for any additional funds from any equity or debt financing above a threshold of US$5m to be used to pay off the outstanding deferred consideration.
“Whilst Nokia did not say that it categorically intended to apply this clause, the Synchronica Board believe that it would not be able to take such a risk on behalf of shareholders,” its statement said.
It wanted Intertainment Media's first investment of C$1 million to be used for additional working capital and to integrate the Ortsbo language technology with Synchronica’s Mobile Gateway.
Myriad said yesterday that fund manager Fidelity had agreed irrevocably to accept the offer in respect of its 9.04 per cent holding.
It added that its offer of 4.67 New