24th Mar 2021 18:02
Tavistock Investments PLC - Bracknell-based fund manager - Confirms it received an unsolicited and non-binding approach letter from Team PLC earlier in March.
Team on Tuesday said it made a confidential approach to the board of Tavistock on March 11. Team said it was notified on March 15 that Tavistock would not be engaging or providing access to due diligence materials, and so now is looking to engage with Tavistock shareholders to discuss the merits of a possible offer at an exchange ratio of one Team share for every 36 Tavistock shares, implying a value of 2.50p per Tavistock share.
Tavistock on Wednesday says: "The announcement made yesterday by Team omitted to mention that the proposed terms of the original approach were one Team share for every 45 Tavistock shares and, based on the prevailing share prices at the time, equated to 2.00p per Tavistock share, a zero per cent premium to the prevailing Tavistock share price."
Tavistock "unequivocally" rejected the original approach on the basis that it significantly undervalued the company.
Tavistock notes that Team was only recently admitted to trading on AIM and has a "negligible track record of successfully acquiring and integrating businesses to create a larger group", and adds that very few of Team's 16.6 million shares in issue have been traded since it join AIM, meaning shares can "thus be considered illiquid."
After consideration with its advisers, Tavistock has also decided to reject Team's revised offer.
"The proposed offer continues to significantly undervalue the business that has been established by Tavistock. The board believes that a sum of the parts valuation of the Tavistock businesses, based upon industry standard matrices, would demonstrate that the true value of the company is several times higher than its current market capitalisation," says Tavistock.
Current stock price: 2.50 pence
Year-to-date change: up 79%
By Lucy Heming;Â [email protected]
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