29th Oct 2025 10:44
(Alliance News) - A leading shareholder in Inspecs PLC urged the company to prioritise a sum-of-the-parts approach when considering rival bid approaches.
Last week, Bath, England-based Inspecs said that it had received two separate, unsolicited proposals from H2 Equity Partners Ltd and a consortium consisting of Risk Capital Partners and Ian Livingstone, the angel investor who founded Games Workshop Group PLC.
Both set out non-binding possible cash offers for the group, alongside the possibility of an alternative offer including unlisted securities to acquire the company.
In addition, Inspecs, which designs, manufactures, and distributes eyewear, said it had received a proposal from Italian eyewear group Safilo Group Spa to acquire the Eschenbach Group and BoDe businesses of Inspecs.
Inspecs bought German eyewear supplier Eschenbach for GBP84.8 million in 2020 and spectacle frame distributor, BoDe, also based in Germany, for EUR1.8 million a year later.
Norwegian investment fund First Seagull, which holds 5.5% of Inspecs, said it "strongly" encourages Inspecs to "prioritise a sum-of-the-parts divestment."
It also called on board members with "potential conflicts" be recused from the process immediately to ensure independence and to secure an investor-friendly outcome.
In a letter sent to the Inspecs board last Friday, First Seagull said it thinks Safilo would "have the highest willingness to pay" when it came to Eschenbach and BoDe, given its industry presence and potential synergies.
First Seagull thinks Eschenbach alone could be worth GBP80 million to GBP90 million.
On Wednesday, Inspecs shares traded at 58.15 pence, up 2.0%, valuing the business at GBP59.1 million.
In total, First Seagull estimates Inspecs to be worth 90p to 110p per share based on stand-alone divestment values for its divisions, or GBP110 million to GBP130 million.
First Seagull called on Inspecs to run a "proactive process" for the remaining assets; Killine Group, Inspecs Inc and Ego Eyewear and believes each asset can obtain attractive valuations if sold separately.
First Seagull thinks Killine Group is worth GBP20 million to GBP25 million, Inspecs Inc worth GBP5 million to GBP10 and Ego Eyewear GBP5 million.
The shareholder also called on Inspecs to put in place "adequate safeguards" so that no "influential insider" may expropriate value from shareholders by resisting the best outcome or taking other adverse actions.
"We believe this is necessary to also avoid tainting the reputation of the board members through mere association with such behavior or subsequent results," it added.
Should Inspecs not take steps to run a proactive, independent process with all interested parties, or if divestment proceeds are not promptly returned to shareholders, First Seagull will "not hesitate" to requisition an emergency general meeting to ensure that the "necessary steps" are taken by this board or, "if required, a refreshed board."
On Wednesday, Inspecs said it has formed a Transaction Committee comprising only independent non-executive directors.
The committee is working with its financial and legal advisers to assess all of the company's options.
By Jeremy Cutler, Alliance News reporter
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