The board of listed-manufacturer TT Electronics rejected an ‘unsolicited’ proposal from Volex, after its chief Lord Rothschild urged shareholders to engage this morning.
Listed manufacturing specialists Volex informed its shareholders on Friday morning that its second offer to TT Electronics is “highly attractive”, and called on shareholders to urge the board of TT Electronics board to consider it.
The first proposal comprised 62.9 pence in cash and 0.203 new Volex shares per TT Electronics share. The second proposal comprised 62.9 pence in cash and 0.223 new Volex shares per TT Electronics share which implied a price of 135.5 pence per share.
However, it was stated that TT Electronics declined to engage with Volex and rejected these offers.
On Friday, Volex stated that based on its share price on Thursday, its offer would mean a value of 139.6 pence per TT Electronics share, valuing the fully diluted share capital at £248.6m.
TT Electronics issued a response letter on Friday afternoon on Volex announcement, confirming it received an ‘unsolicited conditional proposal from Volex’ on 31 October
The group stated that after “carefully considered the Volex proposal together with its advisers”, it unanimously rejected the proposal on 7 November as it “fundamentally” undervalued TT Electronics and its long-term prospects.
The board also announces that it has recently received and rejected an all-cash indicative proposal from another party at a significantly higher value than the Volex proposal.
However, it added there are no ongoing discussions with this third party.
The group advised its shareholders to take no action, as there can be no certainty that an offer will be made, but it added a further announcement will be made when appropriate.