By Phil Boeyen, ShareChat Business News Editor
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Monday 24th September 2001 |
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The company is citing the uncertain market as the reason for withdrawing the offer, saying the decision comes as the Australian economy continues to weaken in the aftermath of terrorist attacks on the US.
"The Australian sharemarket is substantially down and the macroeconomic outlook is increasingly uncertain," says chairman Dr Richard Janes.
"In our view it is preferable for VTL to retain the $2.5 million earmarked to complete this purchase. That leaves the company in a strong cash position."
Dr Janes says the company was entitled to pull out of the deal under a condition that it could cancel 'in the face of adverse and unprecedented market conditions.'
"The Australian market remains important to our growth plans, and we still retain a substantial investment and presence there. However, in the current climate the directors have determined it preferable to retain cash for working capital and future investment."
Immediately following the US terrorist attacks VTL postponed a one for ten rights issue which would have raised money towards the purchase of Soche, Australia's largest independent vending business with operations in Victoria, New South Wales and Queensland.
Despite the change in plans VTL has re-affirmed to the market that it is operating profitably and remains confident of meeting the current year's earnings forecast.
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