24th Nov 2022 18:04
(Alliance News) - finnCap Group PLC on Thursday said it has ended discussions with stockbroker peer Panmure Gordon Group Ltd over its takeover proposal.
In October, London-based stockbroker finnCap confirmed it has received a non-binding takeover proposal from Panmure Gordon.
The proposal consisted of a cash portion or an alternative which would see electing shareholders receive Panmure Gordon stock.
At the time, Panmure had until close of play on November 15 to decide whether or not it planned to make an offer. This deadline was then extended to December 13 earlier this month.
On Thursday, finnCap said: "As a result of initial discussions, the boards of directors of both finnCap and Panmure Gordon believed that there was sufficient cultural fit and strategic and commercial logic to merit examining a combination of the two businesses.
"However, following further discussions and in light of each company's strengths as independent entities, each board has concluded that it is not possible to find mutually acceptable terms or structure for such a combination," it continued.
finnCap plans to publish its interim results for the period ended September 30 in mid-December.
In September, finnCap said trading between April 1 and August 31 was about 30% lower than in the comparable period a year before. The company attributed this to muted investor confidence, reduced equity capital markets activity, and tightening debt market conditions.
Further, the company announced that month that Chief Operating Officer Tom Hayward will leave finnCap on January 20, 2023.
finnCap shares closed flat at 18.50 pence each in London on Thursday.
By Sophie Rose; [email protected]
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