3rd Jun 2016 06:28
LONDON (Alliance News) - Two private investment management firms Friday said they are considering making an offer to acquire Source BioScience PLC, adding the offer price would be at a premium.
Continental and Hardwood Capital released a joint statement that said they are "in the process of evaluating and preparing for a possible offer" for the entire issued share capital of Source BioScience, the provider of laboratory services and products.
Although the offer is not firm, the two investment management firms said the offer would be 18.0 pence per Source BioScience share, which is a 21% premium to the company's closing share price on Thursday.
Source BioScience currently has a market capitalisation of around GBP51.7 million and if the offer of 18.0 pence per share was made the company would be valued at around GBP62.9 million.
Certain clients that are advised by Continental already hold 25.5 million shares in Source BioScience, representing a 7.29% stake, whilst clients of Harwood currently hold 82.5 million shares in Source BioScience, equal to a 23.62% stake.
That means the joint offererors already hold a combined stake 30.91% in Source BioScience.
In addition, the joint offererors have obtained letters of intent from other Source BioScience shareholders with a further holding that is equal to a 19.96% stake in the company, meaning they hold and/or control a total of 177.7 million shares in Source BioScience, equal to a 50.87% stake.
Source BioScience had not released a statement on Friday morning, but the two investment management firms said the company has now entered into an offer period and said they have already held "initial discussions" with the Source BioScience board.
"This announcement is being made with the knowledge of the Board of Source BioScience and a further announcement will be made in due course, as and when appropriate," said Continental and Harwood.
The two investment management firms said the offer would not increase, but said it could make an offer lower of 18.0 pence if the Source BioScience board agrees and recommends a lower offer or if Source BioScience declares, makes or pays any dividend or additional distribution to its shareholders.
Continental and Harwood will have until the first day of July to make a firm offer or walk away from the deal.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
SBS.L