Those months of talks between the two finally culminated in a recommended offer for AB Electronic Products Group Plc from TT Group Plc – but there is nothing in it to cheer shareholders. Against a price in the market for AB of 56 pence a share, TT is making a 10 for 37 share exchange […]
Those months of talks between the two finally culminated in a recommended offer for AB Electronic Products Group Plc from TT Group Plc – but there is nothing in it to cheer shareholders. Against a price in the market for AB of 56 pence a share, TT is making a 10 for 37 share exchange offer to value AB shares at only 50.3 pence – a value likely to erode as TT shares fall as news of the bid sinks in, with a cash alternative of 45.1 pence a share. The deal values the Abercynon, South Wales contract manufacturer and components maker at about UKP13.3m. TT will make a placing and open offer to its shareholders of 4.59m new shares at 167 pence a share to raise about UKP7.7m to help it to finance the takeover.
