9th Sep 2019 18:37
(Alliance News) - Frontier Smart Technologies Group Ltd said on Monday that it has reached an agreement with consultancy firm Science Group PLC over a statutory merger.
Under the terms of the deal, Frontier's shareholders will receive 25.00 pence per share which the company said represents a 70% premium to its closing price of 14.75p on May 17, the day before Science Group first approached the home technologies firm.
Since then, Science Group has been steadily building its stake in Frontier and it initially pursued a takeover at 30.00p per Frontier share, though this was rebuffed in May.
Science Group then proposed a price of 35.00p per share, but Frontier's board urged shareholders to not accept any offer below 37.00p.
Eventually, the two companies agreed on the 25.00p valuation with and in August, Science Group said it now intends to pursue a merger in accordance with Cayman Islands law, where Frontier is incorporated.
The two companies have now entered into a "merger implementation agreement" and Frontier has given the London Stock Exchange notice for the proposed cancellation of trading of its shares, subject to the merger being completed.
The agreement is a far cry from the bruising boardroom battle the two firms have engaged in for much of the summer. The impasse eventually led to two Frontier directors and its former Chair Hossein Yassaie leaving the board.
Among other things, Frontier said, the merger needs the approval of 75% of shareholders at an extraordinary general meeting which will take place on October 11.
Shares in Frontier Group closed 9.8% lower at 23.00p each in London on Monday and shares in Science Group closed 0.5% lower at 189.50p apiece.