1st Jul 2019 10:13
(Alliance News) - Audio technology firm Frontier Smart Technologies Group Ltd said Monday it received no direct communication from Science Group PLC over an improved offer.
This comes after, earlier Monday, advisory company Science Group announcing a 35 pence a share offer for Frontier Smart, well over double the 14.75p Frontier Smart share price on May 17, the day before Science Group announced an initial approach.
Frontier Smart shares were 12% higher Monday morning at 36.40p, with Science Group down 0.3% at 198.50p.
Frontier Smart said this is the first time it has heard, publicly or otherwise, about an improved offer. Science Group, which already owns 28% of Frontier Smart, had previously made a 30p approach in May, but failed to reach an offer agreement.
Science Group said the new offer needs the approval of 50% of Frontier Smart's shares, plus one share.
"To simplify the process and accelerate payment for Frontier shareholders, Science Group has instructed Panmure Gordon to buy up to 10 million Frontier shares in the market at a price per share equal to the acquisition consideration at any time from today up to the end of the offer period," it added.
"The sale of such Frontier Shares through the Panmure Gordon trading facility will be the simplest and quickest method to receive sale proceeds and to ensure certainty."
As of Thursday last week, Frontier Smart had 40.7 million voting rights in issue, meaning Science Group holds approximately 11.4 million voting rights. If 10 million shares were sold under the Panmure Gordon facility, this would raise Science Group's stake to 53%, passing the takeover threshold.
Science Group is not the only suitor for Frontier Smart. In mid-May, Frontier Smart said it had been in talks with a "credible industry player" over an offer for Frontier Smart, but this has not yet come to a solid approach.
Frontier has urged shareholders to make no decision on the Science Group offer. Science Group itself has said it will not accept any offer from another party for its Frontier Smart stake.
Related Shares:
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