Edinburgh-based Castle Street Investments disclosed on Christmas Eve that it was in “advanced” talks with a potential acquisition target in the IT managed services sector.
Aim-listed Castle Street Investments, whose chairman Bill Dobbie founded the Cupid online dating agency, said if the deal goes ahead it would be done as a reverse takeover.
“The company and its advisers have identified and are working with a new management team to lead the enlarged group if the acquisition completes,” the investing company told investors.
Castle Street said the acquisition was “of a size that would require a placing of new Castle Street shares” to supplement the group’s cash resources, and to provide capital to help implement the enlarged company’s growth plan.
The group’s shares were suspended pending completion of the acquisition, for which it said definitive terms were expected to be agreed during January 2016.