Response to announcement by Volex plc
Volex made unsolicited 135.5p per share bid; TT Electronics board rejected as undervaluing company.
- Volex proposal value per share 135.5 pence
- Volex cash component 62.9 pence per share
- Volex share component 0.223 new Volex shares per TT Electronics share
- Volex share price at proposal date 325.0 pence
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THIS IS AN ANNOUNCEMENT OF A POSSIBLE OFFER UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "TAKEOVER CODE") AND IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE
TT Electronics plc ("TT Electronics" or the "Company")
Response to announcement by Volex plc ("Volex")
The TT Electronics Board notes the recent announcement by Volex plc ("Volex").
The TT Electronics Board confirms that on 31 October 2024, the Company received an unsolicited conditional proposal from Volex to acquire the entire issued and to be issued share capital of the Company for 62.9 pence per share in cash and 0.223 new Volex shares for each TT Electronics share (the "Volex Proposal"). Based on Volex's closing price of 325.0 pence per ordinary share as at 31 October 2024, the Volex Proposal valued each TT Electronics share at 135.5 pence.
On 7 November 2024, the TT Electronics Board, having carefully considered the Volex Proposal together with its advisers, unanimously rejected the Volex Proposal as fundamentally undervaluing TT Electronics and its long-term prospects.
The TT Electronics 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. There are no ongoing discussions with this party.
Shareholders are advised to take no action. There can be no certainty that an offer will be made. A further announcement will be made as and when appropriate.
In accordance with Rule 2.6(a) of the Takeover Code, by not later than 5.00 pm (London time) on 13 December 2024, being the 28th day following the date of this announcement, Volex must either:
- announce a firm intention to make an offer for TT Electronics in accordance with Rule 2.7 of the Takeover Code; or
- announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Takeover Code applies.
This deadline can be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Takeover Code.
This announcement has not been made with the consent of Volex.
For further information please contact: MHP, Tim Rowntree / Ollie Hoare, tel: +44 (0)7817 458804
Publication of this announcement
Rule 2.9
Additional Information
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.