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Shares in XP Power Ltd fell on Tuesday after Advanced Energy Industries Inc said it does not intend to make an offer. Shares in XP Power, the maker of power control systems, fell 16% to 1,314.32 pence in London on Tuesday for a market capitalisation of £311.8 million. AEI said it had sought to engage with the XP Power board of directors, but the lack of any progress has prevented it from accessing the due diligence materials necessary to make a firm offer. AEI is a maker of precision power conversion, measurement, and control solutions. In May, it said it had made three all-cash takeover approaches for XP Power, each slightly higher than the last. The first offer in October valued XP Power’s equity at £339 million, a second roughly two weeks later in November at £369 million and the most recent, in May, at £468 million. Including debt, the latest proposal had a total value of £571 million. AEI said the latest approach, at 1,950p per share, ‘captured the potential of future market recovery while factoring in near and intermediate term market and operational risks facing XP Power as a standalone company’. ‘Advanced Energy further believes that an offer would have been an excellent opportunity for XP Power’s shareholders to realize an extraordinary premium, in cash, which would fully de-risk their investment,’ the company added. XP Power said it has had no contact from AEI since rejecting the indicative proposal in May. XP Power confirmed that its full year trading expectations remain unchanged. Interim results will be announced August 6. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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