Jim McColl to consider merger after low Aim share price

ENGINEERING entrepreneur Jim McColl has said he will consider a merger or other options for his Clyde Process Solutions business due to its lowly share price.

McColl expressed frustration at the low valuation placed on the company, which listed is on the Alternative Investment Market (Aim).

The company's market capitalisation of around 16 million is less than half the net asset value on the balance sheet.

"We will be reviewing options to see if we can maximise value for shareholders. I am not ruling anything in or out," McColl told Scotland on Sunday.

He said the low market value prevented him from embarking on a major acquisitions spree.

McColl also claimed Aim had become "dysfunctional" by not giving a true reflection of company values.

"We have a growth strategy for this company which includes organic growth and acquisitions. But it is held back from acquisitions because of the share price. It is very frustrating," he said.

He added he had detected a trend for institutional investors to close their positions in smaller companies and move to the main market.

The company is tomorrow expected to report another strong year of profits growth.