|
Volex PLC on Thursday said it won’t make a takeover offer for TT Electronics PLC, saying the TT board wants too high of a price. Volex Executive Chair Nat Rothschild said: ‘Volex remains resolutely disciplined in how it allocates capital and, applying that principle, we will not proceed with an offer for TT Electronics as it is now clear that the board of TT Electronics is not willing to recommend an offer at a valuation that is also acceptable to Volex. ‘Volex remains confident in its ability to meet full year expectations and remains focussed on delivering its five-year plan.’ Back in November, TT Electronics, a Woking, Surrey-based manufacturer of electronic components, rejected a takeover bid by Volex, a Basingstoke, Hampshire-based specialist integrated manufacturer of critical power and data transmission products. TT Electronics had rejected the unsolicited approach as ‘fundamentally undervaluing TT Electronics and its long-term prospects’. Volex shares rose 8.7% to 311.39 pence late Thursday morning in London for a market capitalisation of £567.1 million, while TT Electronics shares dived by 12% to 104.00p, giving it a market capitalisation of £190.3 million. Volex in November had said its initial bid for TT valued its shares at 129.0p apiece. The offer was for 62.9p in cash coupled with 0.203 of a new Volex share per TT share. Volex followed up with an offer valuing TT’s shares at 135.5p. However, per November 14’s closing price for Volex, the implied value was then 139.6p as of November 15, a 77% premium to TT’s closing price of 79.0p on November 14. The second offer, which comprised 62.9p in cash with 0.223 Volex share per TT share, valued TT at £248.6 million. Copyright 2024 Alliance News Ltd. All Rights Reserved.
|
