Raymarine, has received a takeover approach from Garmin, the giant US manufacturer of mobile navigation systems. Raymarine has been looking for a partner to rescue the business as it battles falling profits and mounting debts. In recent months its market value has collapsed to just £10m from a peak of nearly £390m in 2007.
Garmin, based in the Cayman Islands, is a leading manufacturer of global navigation devices and is valued at nearly £3.6 billion on the Nasdaq stock exchange. As well as the marine industry, its products are used in mobile phones, aviation and outdoor pursuits. Raymarine say: ‘We are in preliminary discussions with a number of parties, including Garmin, which may or may not lead to a sale of the Company.
‘The Company continues to explore a sale of the business or an equity fundraising and, in the absence of either of these, to secure additional medium term debt facilities with its banking syndicate.
‘The Board notes that, at this stage, there can be no certainty that an offer will be made nor as to the terms on which any offer might be made. At present, it is not known whether any offer will provide any value for ordinary shareholders. This announcement is not made with the consent of any of the potential offerors. Further announcements will be made as appropriate.’