Colliers shareholders could see their investment wiped out if FirstService is successful in its takeover bid.
An announcement released this morning by the Canadian property services firm warned that its offer is “likely to be solely in cash and at a price that is a significant discount to the current trading price”.
FirstService, which owns a 29.9% stake in Colliers, continued: “Further, should any offer be made, such an offer may result in minimal, if any, value to the shareholders of the company, given the significant level of indebtedness and other liabilities of the company.”
Shares in Colliers International UK were down 0.35p, or 31.82%, to 0.75p following the announcement.
It has been undergoing a restructure following the injection of £9m from FirstService in 2009 and the departure of former chief executive David Izett in 2010.
The business has been loss-making for three years and has a market capitalisation of £1.5m. It is due to repay £18m of debt this September.
bridget.oconnell@estatesgazette.com
