Avonside looks at private benefits

AVONSIDE YESTERDAY joined the growing list of smaller companies turning private, announcing it had agreed a pounds 22.38m, 55p a share cash bid from Novaside, a company set up by Craig Slater, one of its directors, and venture capitalists Alchemy Partners. Novaside said it had received irrevocable undertakings in respect of 0.30 per cent of the capital to accept the offer, which represents a premium of 37.5 per cent to Avonside's share price the day before it confirmed it had been approached.

Both sides said the privatisation would remove the financial, managerial and regulatory burdens of being a listed company and enhance Avonside's ability to respond to opportunities and market demands quickly.