3rd Oct 2019 12:05
(Alliance News) - Building services firm Northern Bear PLC will not receive a takeover offer from Cedarvale Holdings Ltd, the private investment firm reiterated on Thursday.
Last Thursday, Cedarvale said it would be buying 5.4 million Northern Bear shares at a price of 72.00 pence each via a tender offer. The price is a 20% premium over the firm's closing price in London on the day before, and values the share purchase at GBP3.9 million.
Northern Bear's shares were trading 2.9% lower at 66.55p each in London on Thursday morning.
Cedarvale said it "does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of Northern Bear".
If the tender offer is accepted, Cedarvale would take a 30% stake in the firm, this would allow it to "unilaterally veto any special resolutions proposed by the board", Northern Bear said last Thursday.
"The board was not made aware of the tender offer until late on September 25. The board takes no position at this time with respect to the tender offer and shareholders who are in any doubt about the tender offer or what action to take are recommended to consult an independent professional adviser duly authorised under the Financial Services & Markets Act 2000 who specialises in advising on the acquisition of shares and other securities before taking any action," Northern Bear added.
Cedarvale is a private investment firm owned by Canadian Jeff Baryshnik, who is currently president of Republic Funds USA Inc, a company he founded in 2009.
By Eric Cunha; [email protected]
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