Joules deal with Next in danger after share price tumbles
One insider said a deal was still possible, but that time was running out to agree a transaction
Joules’ hope of securing an investment lifeline from Next has taken a blow after reports suggest that the two companies are still not close to coming to an agreement, according to Sky News.
The news comes three weeks after it the companies first confirmed they were in discussions.
Joules’ valuation since the companies engaged in talks has dropped from 33p-a-share to just 25.5p.
Sources said this weekend that Next had not received “sufficient” financial information to enable it to make a formal proposal to the Joules board.
In a statement on Sunday, a Joules spokesperson told Sky: “Joules continues its positive discussions with Next plc about both adopting its Total Platform services to support its long-term growth plans and a potential equity investment.
“There can be no certainty that these discussions will lead to any agreement, and further announcements in this regard will be made if and when appropriate.”
However, one insider said a deal was still possible, but that time was running out to agree a transaction.
Joules said earlier in August that it was aiming to secure an equity investment of about £15m, although the company now has a market value of just under £30m following a calamitous fall in its share price.
