4th Mar 2016 16:39
LONDON (Alliance News) - Three directors of Tangent Communications PLC successfully fended off a rival bid for the company on Friday after increasing its takeover offer for the London-listed online printing and digital marketing firm.
Tangent shares were closed up 34% at 3.85 pence per share on Friday afternoon.
Three directors of Tangent Communications launched a takeover bid for the company earlier this year, which was initially backed by the other independent directors of the company, but was then disrupted by a rival offer from media and marketing firm Writtle Holdings Ltd.
Tangent Chief Executive Officer Timothy Green, Chief Financial Officer Jamie Beaumont and Executive Director Nicholas Green, through a vehicle, initially launched an offer of 2.25 pence per share for Tangent Communications.
But the independent board of Tangent Communications then pulled its support for that bid after Writtle Holdings offered a deal worth 3.0 pence per share to Tangent shareholders, valuing the company at around GBP8.7 million in total and a 33% premium on the 2.25p per share offer made by the management team's.
However, the saga took another turn after the directors making a bid for Tangent Communications pushed its offer price up to 4.0 pence per share, which seems to be too high for Writtle.
"Writtle congratulates Bidco (the vehicle used by the three directors) on its increased offer and leaves the contest. Writtle wishes Tangent and its employees every success in the future," said Writtle on Friday.
Although Writtle is resigned to losing the race to acquire Tangent, the offer technically remains open until March 22.
By Joshua Warner; [email protected]; @JoshAlliance
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