18th Sep 2013 10:08
LONDON (Alliance News) - Earthport PLC and Baydonhill PLC said Wednesday that they had reached an agreement for the buyout of currency broker Baydonhill by Earthport for approximately GBP6.4 million cash.
Earthport will offer 11 pence for each Baydonhill share. Baydonhill's board has recommended shareholders accept the cash offer.
Earthport also is offering Baydonhill shareholders an alternative offer of 4.80 pence per share in cash, plus one contingent value right per share. The contingent value right will entitle Baydonhill shareholders to receive a further maximum 0.281 Earthport shares and 2.61 pence in loan notes, depending on Baydonhill's financial performance between this past July and the end of June 2016.
This earn-out offer potentially expands Baydonhill's value to around GBP7.8 million.
However, the Baydonhill Board said in a statement that it had been unable to decide if the earn-out offer was fair, and thus could not give a recommendation whether to accept it, due to the uncertainty of the contingent value right's value.
Earthport is a global finance service; its shares were trading down 0.20 pence at 21.30 pence Wednesday morning. Baydonhill shares have not traded Wednesday. They closed at 2.25 pence on Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
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