8th Jul 2019 13:05
(Alliance News) - Science Group PLC on Monday said its takeover offer is now the only offer for Frontier Smart Technologies Group Ltd, after an approached from an unnamed "credible industry player" is no longer expected to result in an offer.
Science Group already owns a 28% stake in Frontier Smart, and made a 35 pence per share offer for the technology company on Monday last week. Frontier Smart focuses on digital radio and smart internet-of-things devices.
Frontier Smart has earlier received an approach from an unnamed "credible industry player". This has coalesced into a proposed strategic investment via a joint venture, into which Frontier Smart is to "roll certain of its smart software assets".
But on Friday last week, Frontier Smart said these discussions are not expected to result in an offer.
Science Group on Monday encouraged Frontier shareholders to accept its offer prior to the closing date on Tuesday next week.
However, Frontier is advising its shareholders to reject the offer on the basis that at some undefined point in the future, it may possibly agree a joint venture with an undefined party into which Frontier would transfer key assets.
Science Group noted, however, that as at December 31, Frontier had net retained losses of USD175.5 million and that between January 2018 and May 2019, the current Frontier board pursued a strategy that resulted in a share price decline of over 90%.
Frontier shares were trading 0.3% lower on Monday in London at 35.40p each.
Science Group said it does not anticipate increasing the offer price as 35p per share represented almost tripled Frontier's share price at the time of offer in May.
The science and technology-based consultancy services provider's shares were trading 2.5% higher on Monday in London at 204.00p each.
Related Shares:
Science GroupFST.L