Another suitor walks away, as EcoSecurities acquisition saga rumbles on

Ireland-based carbon offsetting firm EcoSecurities has announced that the latest chapter in its long-running takeover saga has ended in another dead-end after its most recent suitor succumbed to apparent last-minute jitters.

In a statement released yesterday, the EcoSecurities board confirmed that its takeover talks with Swedish carbon-offsetting company Tricorona AB had been terminated, although it added that it was still in negotiations with another unnamed party.

"The board of EcoSecurities notes the announcement today by Tricorona AB that it is not proceeding with an offer for EcoSecurities," the company said. "The board is in ongoing discussions with another party regarding the possibility of making an offer for EcoSecurities. There can be no certainty that an offer or any other transaction will occur."

For its part, Tricorona confirmed that it had been in discussions with EcoSecurities in July about a potential takeover but the deal would no longer be going ahead.

"Tricorona AB announced on 21 July 2009 that it reviewed the possibility of making an offer for EcoSecurities Group plc, an Irish company listed on AIM in the United Kingdom," the company said in a statement. "Tricorona has now announced that it is not proceeding with an offer for EcoSecurities Group plc."

But despite ongoing problems attracting a buyer, the EcoSecurities board earlier this week advised shareholders not to respond as yet to a revised offer from Guanabara Holdings – a company set up by EcoSecurities co-founder and former president Pedro Moura Costa that has been engaged in a long-running attempt to acquire the firm.

"The board of EcoSecurities is considering the terms of the Revised Offer and awaits the publication of the revised offer document by Guanabara," the company said in a statement. "The board will make a further announcement in due course. "

EcoSecurities may have strengthened its bargaining position with potential suitors after it announced a seeming turnaround in its financial performance at the beginning of August. Results for the six months up to the end of June showed that revenue for the period increased more than four-fold year on year to €60m (£52.6m), while the company also recorded a pre-tax profit of €1.1m, marking a significant improvement on the €10m loss posted during the first half of last year.

EcoSecurities board also took the opportunity in August to reject another unsolicited bid for the company from Guanabara of 77 pence per ordinary share, branding the offer "wholly inadequate".

In July, the trading arm of energy giant EDF announced it was no longer going to table a bid directly for EcoSecurities, but would instead team up with Guanabara.