)
Keybridge (ASX:KBC) has decided to not proceed with its proposed takeover of confectionary company Yowie (ASX:YOW).
The company says that after considering Yowie's quarterly cashflow report, which Keybridge described as "disappointing", it will not pursue the takeover.
Yowie reported a significant operating loss, a nearly 50 per cent decline in operating revenue from the previous quarter, and a decline in the cash position of the company from the beginning of the quarter of US$18.751 million to US$16.982 million.
This announcement spells the end of Keybridge's proposed takeover of the Australian chocolate group.
The initial takeover of Yowie was worth $20 million.
Keybridge intended to take over Yowie in order to "exert material influence" and appoint new directors to steer the Yowie ship.
Shares in Yowie are down 4.22 per cent to $0.07 per share at 10.48am AEST.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Enjoyed this article?
Don't miss out on the knowledge and insights to be gained from our daily news and features.
Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.
Support independent journalism and stay informed with stories that matter to you.
)
)
)
)
)
