VAL has tabled 126p per share for the 11.3 per cent of Victory that it does not own, valuing the direct selling cosmetics business at£14.3 million.
Over the past 18 months, Victory has been undergoing restructuring to lower costs and protect profitability.
A statement accompanying the offer read: 'While this programme has yielded positive results, the Victory board has recognised that further investment is required to enable the business to achieve the desired growth and profitability that will enhance value for all shareholders.
'It is, however, clear that the company is unable to raise either debt or equity finance independently of Virgin, meaning that prospects for growth as a standalone business are constrained.'
The size of Virgin's existing shareholding made Victory stock illiquid. In the past six months, only 305 Victory shares were typically traded per day.
No comments yet