15th Jul 2019 14:18
(Alliance News) - Science Group PLC said on Monday that it will not raise its initial takeover offer for Frontier Smart Technologies Group Ltd as the stalemate between the two companies continues.
Science Group has a 36.6% stake in Frontier.
According to Frontier, the companies verbally had agreed on a valuation of 37p for each share on July 10, though Science Group said it will not raise its offer price of 35p.
Shares in Frontier were down 2.8% at 35.00 pence each in London on Monday. Science Group was 1.7% at 195.70p.
Science Group, a consulting firm, said it initially considered raising its offer price but after talks between the two broke down, Science Group affirmed that it would not increase its valuation of Frontier, an audio technology firm.
Science Group is continuing to pursue a hostile takeover and on Monday recommended that Frontier's shareholders either accept its offer or sell their shares through the Panmure Gordon trading facility by Tuesday afternoon.
For its part, Frontier advised its shareholders to not accept Science Group's offer nor sell any of their shares through Panmure Gordon.
Frontier claimed that just hours after Science Group released a statement saying that it would not raise its offer, Science Group reached out to Frontier about the possibility of recommending a valuation of 36p-per-share.
Science Group accused Frontier of failing to respect customary confidentiality.
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