Firm offer for Zamano expected within six weeks

A takeover of Irish mobile technology firm Zamano could become a reality in the next couple of months.

The Dublin-based firm — which provides messaging, advertising and payments support tools to mobile communications companies — announced the receipt of an indicative offer, of 20c per share, from an unnamed suitor earlier this week.

Speaking after the company’s agm in Dublin yesterday Zamano chairman John Rockett said the offer was still highly conditional, ahead of due diligence being undertaken.

However, while not wishing to comment on the perceived value of the proposed offer, Mr Rockett said: “We’ll take the right steps to try and maximise shareholder value.”

However, he added that the approach won’t affect Zamano’s existing day-to-day business and won’t cause a distraction. He also said that the issue isn’t likely to drag out too long; putting an estimate of within “a couple of months” for real progress to have been reached. It is believed Zamano’s board may be in a position to put a formal offer to its shareholders within six weeks.

Away from the potential takeover offer, Zamano told shareholders yesterday that it continues to pursue expansion options, with acquisition opportunities in Ireland and the UK being evaluated. The company has a warchest of around €5m to invest if necessary.

“The group continues to investigate acquisitions which meet its investment criteria, in terms of value and potential,” management said at the AGM.

“We’re still looking at expanding both geographically and our product base,” Mr Rockett said.

Following the meeting, chief executive Ross Conlon said that the sector is “a very dynamic market”, but that management would only do a deal that makes sense. He added the board has come close to doing a number of deals, in recent times, before “backing away”.

In March, Zamano reported a strong set of figures for 2014 which showed revenues up 24% to €19.86m, pre-tax profits up 13.5% to €2.18m and operating profit up 0.4% to €2.23m.

The company’s share price fell 6% in Dublin and 3% in London yesterday.