2nd Feb 2021 11:56
(Alliance News) -Â Innovaderma PLC noted Creightons PLC's release earlier on Tuesday and confirmed it rejected a possible all-share takeover offer.
Beauty, personal care and life science products firm Innovaderma said it rejected the Creightons proposal on the basis it "significantly undervalued" the company and its standalone prospects, adding that the board retains this view.
No further correspondence has been received from Creightons prior to Tuesday's announcement, Innovaderma said.
Innovaderma shares were up 18% at 50.00 pence in London on Tuesday around midday, while Creightons shares were down 4.1% at 63.28p.
Consumer goods manufacturer Creightons earlier on Tuesday said it approached the Innovaderma board a week ago about a possible all-share offer for the company. This was "unequivocally rejected" on Friday without giving Creightons "the benefit of any further discussion", it said.
"The board of Creightons continues to have a serious interest in the possibility of a combination of the two businesses," Creightons said in a statement on Tuesday as it published the text of its letter to the Innovaderma board.
The letter states that the company's "current thinking is that a ratio of 2 Creightons ordinary shares for every 3 Innovaderma ordinary shares would be an appropriate basis". Based on Creightons's closing price of 66p on Monday, this would value Innovaderma shares at 44p each, a premium of 3.5% to their Monday closing price of 42.5p.
Creightons has until March 2 to either announce a firm intention to make an offer for Innovaderma or walk away.
By Lucy Heming;Â [email protected]
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