Runcorn nano-material firm Nanoco Group plc announced that, following an “extensive exercise in relation to a potential sale of the group’s trading business” it is no longer actively seeking a buyer.
Instead, Nanoco said it intends to “deliver comparable or superior value by carefully investing its resources in existing high-potential business areas, while minimising the group’s operating costs.”
Nanoco shares fell 22%.
The company said CEO Dmitry Shashkov will leave the group in February 2026 after a short handover period. Jalal Bagherli, currently non-executive chairman, will become executive chairman.
Liam Gray, currently chief financial officer, will take up the role of Interim CEO.
The firm said its potential sale process was comprehensive and led to discussions progressing to an advanced stage with several counterparties, but not to firm offers.
Nanoco said: “The process reiterated to the board the critical importance of not just potential financial value as compared with the group’s current standalone prospects but also process complexity and execution risk (particularly, in certain cases, considerations around national security investment legislation).
“During the same period, the group made operational progress, including the commencement of a Joint Development Agreement (JDA) with a second Asian chemical customer, and also the three-year extension of its JDA with its first Asian chemical customer.
“In addition, having achieved a successful result in its litigation with LG Electronics Inc. in November 2025, the proceeds of which have now been received, the group has now commenced proceedings against Shoei Chemical Inc. and Shoei Electronic Materials, Inc for the infringement of Nanoco’s intellectual property and is expecting the case to come to trial within the calendar year 2026 …”
The Runcorn firm added: “The non-executive board will be reduced in size to reduce cost, while still maintaining the appropriate balance of independent directors. Therefore, in addition to Dr Alison Fielding’s previously announced retirement from the board, Dieter May will also step down from the board. Both Alison and Dieter will leave in April 2026.
“The board will continue to explore all options to both maximise shareholder value and preserve the company’s cash balance, and will update shareholders as appropriate.”
Nanoco executive chairman Jalal Bagherli said: “We have undertaken a comprehensive process to assess our options for a potential sale of the group’s trading business.
“As we have been clear throughout, the board’s priority has been to secure a transaction that is executable and reflects the inherent value within the trading business versus its standalone prospects.
“We have also, in our assessment, been cognisant of the risks posed to Nanoco’s standalone prospects by the group’s lack of scale and the inherent risk in litigation.
“As it currently stands, we believe that the process is now unlikely to deliver a compelling transaction when the group could instead deliver comparable or superior value by carefully investing its resources in existing high-potential business areas.
“I would like to thank Dmitry for his tireless efforts during the process, working on development and implementation of Nanoco’s organic growth strategy, in parallel with both the CDX process and LG Electronics litigation.
“I am grateful to Liam for agreeing to step into the Interim CEO role in addition to his CFO duties. Liam has been an invaluable part of the Nanoco executive team for a number of years, and I have full faith in his capabilities. He has a thorough understanding of the company’s operations and cost base, and has delivered significant reductions in the group’s costs to preserve shareholder value in the past.
“Equally, I would like to thank Dr Alison Fielding and Dieter May for their contributions to the Board over the last eight and two years respectively.”