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Equals Group PLC announced on Wednesday that it has extended the deadline for a consortium to finalise its acquisition bid. The UK-based fintech company has been negotiating the terms of a buyout since July. The UK Panel on Takeovers & Mergers extended the Wednesday deadline at the request of Equals’ board. The so-called ’put up or shut up’ deadline extension allows the consortium to conclude internal negotiations before formalising the offer, as required by the Takeover Code. Equals said the prospective buyers had completed due diligence checks, but had not confirmed the basis on which one partner, Embedded Finance Ltd, would contribute. Embedded and TowerBrook Capital Partners LLP made a non-binding all-cash offer to buy Equals back in July. Their indicative proposal was for Equals’ entire issued and to be issued share capital at 135 pence per share. Following that offer, JC Flowers & Co LLC joined the consortium, and by September, Equals reported that ‘discussions in relation to a fully equity financed bid had reached an advanced stage’. A further improved proposal was made on October 30, entitling Equals shareholders to a dividend of 2p per share, payable on completion of the transaction. This was in addition to the 2024 interim dividend of 1p per share, which had already been paid. The consortium has until December 11 to announce whether or not it intends to make a firm offer, although the deadline could be further extended. The consortium has the right to make an offer less favourable than those made previously. It can also offer to buy Equals if a third party makes a firm or possible offer on less favourable terms. If Equals announces, declares, makes, or pays any dividend or any other distribution or return of value to shareholders, the consortium can make an equivalent reduction to its offer. Equals shares were down 2.8% at 120.56 pence each on Wednesday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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