29th Aug 2019 11:24
(Alliance News) - Frontier Smart Technologies Group Ltd on Thursday accepted the 25.00 pence per share cash takeover offer from consultancy firm Science Group PLC.
On Tuesday, Science Group confirmed it had hiked its stake in the home technologies firm to 70% after purchasing 8.1 million shares, for 25.00p each.
Science Group said on Wednesday it now intends to pursue a merger in accordance with Cayman Islands law, where Frontier is incorporated.
Frontier said it is highly likely the takeover would be approved by shareholders at a general meeting, likely to occur in October or November, given the size of Science Group's stake in the company.
Frontier also advised shareholders to release their shares by accepting Science Group's 25.00p per share offer rather than via on-market share trading, to avoid incurring dealing costs.
The approval of the takeover will likely bring an end to a bruising boardroom battle which has seen two Frontier directors and its former Chair Hossein Yassaie leave the board.
For several months, 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.
Earlier in August, Frontier said Science Group backed out of plans of a hostile takeover and will "maintain a significant minority shareholding, ruling out a statutory merger in the near-term".
Shares in Frontier Smart were untraded in London on Thursday morning, last quoted at 25.00p each, while Science Group's shares were trading 0.5% higher at 186.49p apiece.
Related Shares:
Science GroupFST.L