24th Apr 2023 12:14
(Alliance News) - Smoove PLC on Monday confirmed it was in early talks regarding a potential cash takeover offer from PEXA Group Ltd.
Thame, England-based Smoove provides online services for conveyancing and financial intermediary markets. Sydney-listed PEXA operates PEXA Exchange, a digital property settlements platform in Australia.
Smoove said there was no certainty an offer would be made, and provided no financial details.
PEXA now has until May 22 to announce a firm intention to make an offer or that it does not intend to make an offer.
It also confirmed it was considering an alternative transaction from an unnamed third party. If it were to pursue this transaction, it would not constitute an "offer", Smoove noted.
Shares in Smoove jumped 39% to 44.42 pence each in London on Monday around midday. It has a market cap of around GBP25 million.
Earlier on Monday, Sky News had reported that the AIM-listed company has received "several" takeover approaches from undisclosed suitors, and was engaged in discussions with at least one potential buyer.
Back in November, Smoove said its pretax loss widened by 94% to GBP3.0 million in the six months to September 30, from GBP1.5 million a year before. Revenue was up 4.2% to GBP10.6 million from GBP10.2 million.
By Elizabeth Winter, Alliance News senior markets reporter
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