Electronic security systems maker Visonic Ltd. (LSE: VSC; TASE:VSC) yesterday said that the sale of subsidiary Visonic Technologies was cancelled after the buyer notified the company that it would not proceed with the deal. The reason: "Visonic understands that recent uncertainties in the financial markets have led to the potential buyer’s withdrawal."
In July, Visonic signed a non-binding sales agreement to sell Visonic Technologies for a few million dollars. Visonic did not disclose the name of the buyer, at the time, nor did it name the buyer now.
Visonic Technologies makes alarm systems for large sites, such as hospitals, prisons, and museums. Visonic said that there was no synergy between its core business and the subsidiary. Visonic reiterated yesterday that Visonic Technologies' business had improved significantly. It added that its own core security and home management business was also doing well and that it "remains confident about the outlook for the year."
Visonic was unchanged on the TASE yesterday, but fell 1.7% in London to ₤0.565, giving a market cap of ₤22.9 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2008
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