Is @ZetaDisplayPubl’s Debt Killing It?

Adrian J Cotterill, Editor-in-Chief

A weird press release from ZetaDisplay AB (publ) (Nasdaq Stockholm: ZETA) this week (that’s often what you have to do when you are a publicly traded company) and it announced that the board of directors has decided to conduct a review of strategic alternatives for ZetaDisplay with the purpose of creating best possible value for the shareholders.

ZetaDisplay’s chairman Mats Johansson said “During the last few years, ZetaDisplay has developed positively with an improved market position, stronger customer offering and considerable growth in SaaS revenues. The board sees good opportunities to continue the development of the company for the long term, and in order to accelerate this development and maximise the future potential of the company, a strategic review should be conducted”.

The business is most likely struggling with its debt, aiming to take itself private without being sued by (angry) shareholders or simply, rather publicly advertising itself for sell.

The statement read “In carrying out the review, no options will be excluded. On the basis of the review, for instance, the board of directors may conclude that ZetaDisplay is best able to create value as a continued stand-alone listed company, possibly in combination with certain limited strategic initiatives, or that ZetaDisplay should be acquired by a new owner which takes the company private”.

The board of directors has engaged Danske Bank Corporate Finance as financial advisor and Vinge as legal advisor in connection with the review.

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