In May 2008, the company received a $133 million takeover bid from a consortium led by private equity firm Archer Capital (80 cents per share!!!). But this deal fell over in August when the two parties could not agree on a price. Funtastic founder and chairman David Hendy resigned after the takeover talks broke down.
In mid-November, Funtastic announced it was owed $8.5 million by ABC Learning, and could be forced to write off another $3.1 million as a result of supply deals with a related ABC company called ABC Development Group.
Since the start of the year (Jan 2008-Dec 2008) Funtastic’s shares have slumped from 63 cents at the start of the year to just 14 cents.
FUN Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
