30th Oct 2024 11:13
(Alliance News) - Equals Group PLC on Wednesday revealed it had received an improved takeover proposal from an interested consortium which has now completed due diligence.
The AIM-listed financial services firm noted an improved proposal of 135 pence per Equals share, but with its shareholders now entitled to a special dividend of 2p per share, payable upon the completion of the transaction.
This would value Equals at around GBP260.8 million.
The special dividend will be in addition to its 2024 interim dividend announced in September of 1p per share. That was paid earlier this month.
Equals stated that due diligence has been completed by the consortium who are now progressing the transaction documentation.
Shares in the firm rose 8.0% to 121.00p on Monday morning in London.
Equals first received a proposal for an all-cash offer of 135 pence per share in July from a consortium comprised of Embedded Finance Ltd and TowerBrook Capital Partners (UK) LLP.
JC Flowers & Co LLC later joined the consortium in September, with the London-based firm noting that discussions had "reached an advanced stage" regarding a fully equity financed bid.
The consortium has received an extension until November 20 to formalise its bid for the company. It previously had until the close of play on Wednesday.
Equals first announced its strategic review in November of last year in response to market speculation.
By Christopher Ward, Alliance News reporter
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