26th Jun 2015 10:34
LONDON (Alliance News) - Tenpin bowling centre operator Essenden PLC has agreed to a cash takeover offer of 80 pence per share from Indoor Bowling Acquisitions Ltd, an offer which values the company at around GBP40.1 million.
Shares in Essenden are untraded Friday morning, it last closed at 81.60 pence.
Indoor Bowling Acquisitions is a subsidiary of Indoor Bowling Equity Ltd, formed by Harwood Capital LLP. Harwood first made a preliminary approach for a potential acquisition of Essenden in March, and the deadline for Harwood to make a firm offer was extended in May.
The independent directors of Essenden, who have been advised by Cenkos Securities PLC, said they consider the terms of the proposal to be fair and reasonable, and as such have unanimously agreed to recommend shareholders vote in favour of the offer.
Indoor Bowling Acquisitions has received irrevocable undertakings and letters of intent to vote in favour of the proposals over 38.35% of the company's existing issued share capital.
"IBA's offer provides Essenden Shareholders with a certain cash exit at a premium to the price at which the company's shares traded prior to Harwood Capital's initial approach and is supported by the majority of the company's significant shareholders. Accordingly, the independent directors unanimously recommend that Essenden shareholders vote in favour of this cash offer," said Non-Executive Chairman of Essenden Rory Macnamara in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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