3rd Sep 2019 10:30
(Alliance News) - Synnovia PLC shares rose on Tuesday after it recommended a GBP48.8 million takeover offer from funds advised by Camelot Capital Partners.
Shares in the industrial components manufacturer were 38% higher at 121.10 pence on Tuesday in London.
Under the acquisition's terms, BPF1 Ltd, a company wholly owned by Camelot will acquire Synnovia for 125 pence per share, reflecting a 43% premium to Synnovia's closing price of 87.5 pence on Friday last week.
Camelot is the investment manager of Barker Partnership LP, which currently holds a 30% stake in Synnovia.
The acquisition is conditional on receiving acceptances from at least 90% of shareholders in Synnovia for the offer, as well as a management shareholder resolution being approved at the company's next general meeting.
So far, Camelot has received irrevocable undertakings from 58% of shareholders to accept the offer.
"The independent Synnovia directors believe that the Synnovia group has made sound investments in product development, geographic reach, production capacity and management capability in order to deliver long-term profitable growth," said Non-Executive Director Keith Butler Wheelhouse.
"However, we recognise that this business growth strategy requires considerable patience and a long term orientation which many investors find challenging particularly in the current economic environment. Therefore, we believe that the value presented by the offer is an attractive opportunity that may not be otherwise achievable in the near term," Wheelhouse added.
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