On 29 June 2015, Emeco announced that both the Rentco acquisition and Orionstone merger will not proceed
Links to the ASX announcement are included below:
These announcements are not unexpected given the public opposition from a number of shareholders to the Rentco acquisition and the difficulties in negotiating a merger or ‘combination’ of Emeco and Orionstone. Shares were down 2.7% in early trade, roughly in-line with the fall in the broader market, further suggesting this was not a surprise to the market.
Whilst Emeco continues to struggle with tough market conditions we note Ken Lewsey, CEO, made the following statement in the Orionstone release: “We are encouraged by the positive steps the business has made in the second half of FY15 and look forward to continued recovery in FY16.”
Emeco is expected to release their full year results on 27 August 2015 at which time we will make further comment.