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Dignity PLC on Wednesday said it is in advanced discussions for a potential recommended cash offer regarding a takeover of the company from a consortium.
The Birmingham, England-based funeral services provider said it received a series of unsolicited proposals from the consortium, comprising investment firms SPWOne V Ltd and Castelnau Group Ltd, dating back to October.
The consortium made an acquisition proposal for Dignity through its joint venture vehicle, Yellow Bidco Ltd.
The latest proposal is for 525 pence in cash per Dignity share, which Dignity said is a value that it would be minded to recommend to its shareholders should a firm intention to make an offer be announced.
Shares in Dignity were up 2.3% to 435.29p on Wednesday afternoon in London.
The consortium first approached Dignity on October 13 for a cash offer of 475p per share. Subsequent proposals received were for 500p and 510p per share, all of which Dignity unanimously rejected.
A month later, on November 13, Dignity received a revised proposal for a cash acquisition of its entire share capital from the consortium at a price of 525p per share.
The latest proposal is an increase of more than 10% compared to the first proposal, and it includes the option for Dignity’s shareholders to stay invested in Dignity through an unlisted share alternative in Valderrama or a listed share alternative in Castelnau.
Dignity said it agreed to provide the consortium with access to limited confirmatory due diligence. The revised proposal is subject to the satisfaction or waiver by the consortium of a number of pre-conditions, including the completion of customary due diligence.
As of Tuesday this week, the consortium was interested in 14.9 million Dignity shares, representing around 30% of Dignity’s issued share capital.
By Jaskeet Briah, Alliance News reporter
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