LONDON (Alliance News) - Financial advisory group AFH Financial Group PLC on Wednesday said it will not make a firm offer to acquire smaller peer Lighthouse Group PLC.
AFH disclosed last week it had made an approach to Lighthouse in March at 13.00 pence per share, valuing Lighthouse at around GBP17.4 million. The offer represented a 27% premium to Lighthouse's closing price on March 8, prior to the initial approach being made.
Lighthouse said the offer tabled by AFH "fundamentally undervalues" the group and its prospects and advised its shareholders to take no action in relation to the AFH bid.
AFH said it was "disappointed" Lighthouse's directors had declined to engage in talks and "surprised" Lighthouse had decided not to consult with shareholders prior to declining the offer.
"We are naturally disappointed with the reaction of Lighthouse to our indicative proposal which included a mix and match structure for individual Lighthouse shareholders. AFH, with its extensive track record of M&A to date, continues to progress its stated organic and acquisitive growth strategy and looks forward to updating the market in due course," said Alan Hudson, AFH's chief executive.
Lighthouse noted AFH's withdrawal of its interest later on Wednesday, adding trading since it published its annual results in February has been in line with market expectations.
AFH shares were untraded on Wednesday morning, having last traded at 161.00p, while Lighthouse shares were down 8.3% to 12.50p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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