12th Jul 2019 16:45
(Alliance News) - Science Group PLC said on Friday it will not be "pressurised" and does not anticipate making an increased takeover offer for Frontier Smart Technologies Group Ltd.
Earlier on Friday, Frontier said Science Group had agreed to increase its takeover offer to 37 pence, from 35p previously, on the condition that Frontier agrees to recommend the improved offer.
Science Group said that it did initiate talks to try and find an "amicable resolution to outstanding matters", but these were then suspended.
"These discussions included the possibility of a slightly increased offer subject to material conditions. Frontier agreed that this arrangement would enable its board to recommend a Science Group revised offer, if issued," said Science Group.
However, the company said that during the drafting stage, "Frontier sought to rescind key conditions, including the Frontier board structure and suspension of the joint venture discussions".
"Talks were therefore suspended," said Science Group.
The company continued: "The board of Science Group will not be pressurised into making an injudicious decision. Due to Frontier attempting to change fundamental aspects of the agreement, time has expired and at this late stage, after many weeks of trying to get the Frontier board to engage, Science Group does not consider that the increased cost to Science Group shareholders is warranted."
"For the avoidance of any doubt", Science Group continued, it does not anticipate increasing ifs offer for Frontier Group.
As at Thursday, Science Group held a 35.8% stake in the firm. The closing date for the offer is Tuesday next week.
Science Group encouraged Frontier shareholders to accept the deal.
Shares in Science Group closed 2.0% higher at 203.0 pence, while Frontier Smart ended untraded at 36.0p on Friday.
Related Shares:
Science GroupFST.L