13th Feb 2020 11:16
(Alliance News) - Haynes Publishing Group PLC on Thursday said it has agreed to a GBP114.5 million takeover by Netherlands-based software development firm Infopro Digital Group BV.
Under the terms of the acquisition, the car manual publisher said its shareholders will receive 700 pence per share, a 63% premium to its Wednesday closing price of 431.0p.
The stock soared on Thursday morning. It was 61% higher at 690.00p each.
The company added that the Infropro offer has received the backing, through irrevocable undertakings, of just shy of 82% of Haynes shareholders.
In order to become effective, over 75% of Haynes shareholders must back the scheme at a court meeting and a general meeting, both are likely to be held in March or April.
Haynes said its directors "unanimously" backed the terms of the deal and will recommend the offer.
Haynes started a formal sale process back in November amid changes at the company and following the death of its founder. In February 2019, John Haynes died after having founded the firm in 1960 and serving as its chair until 2010.
In recent years, Haynes - which publishes car maintenance manuals - has undertaken a strategic shift which has seen it alter its focus towards delivering data and workflow services to the automotive industry and motorists.
Chair Eddie Bell said: "Haynes has made a highly successful strategic transition to become one of the leading suppliers of content, data and innovative workflow solutions for the automotive industry and motorists.
"The Haynes board believes that the markets it serves have great potential for Haynes' future growth and development. The proposal from Infopro Digital reflects these opportunities and represents an attractive opportunity for Haynes shareholders to crystallise an immediate and certain value in cash for their shareholdings, at a significant premium to current and historical share price trading levels."
By Eric Cunha; [email protected]
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