Engineering contractor Norfolk Group says it will resume looking for a takeover partner at the end of the financial year after it was unable to secure a suitable offer from several interested parties.
The company said there was little to differentiate the competing offers it received following a review of operations, and most parties said Norfolk's year-end performance would determine the value of their proposals.
Norfolk said its board of directors continued to believe the company is too small to remain listed as an entity at its current market capitalisation, while recent volatility in the resources sector had weighed upon its share value.
The company said it would resume its strategic review a the end of the current financial year, but
“The board is confident the company will be able to present conclusively the level of full year earnings and quantify cash released from current working capital,” Norfolk said in a statement.
“The work to date on the strategic review demonstrates strong genuine interest exists from parties that are well positioned to potentially integrate and develop Norfolk's business and people as part of a larger entity.”
At close of trade today, Norfolk shares were up 12 per cent, trading at 46 cents.