AFHP.L Share News (AFHP)

LONDON (Alliance News) - Financial advisory group AFH Financial Group PLC on Thursday said it made an approach to acquire fellow UK-listed financial adviser Lighthouse Group PLC this week but was rebuffed.

AFH said it made an initial approach to acquire Lighthouse in March 9, before then submitting an indicative proposal to the Lighthouse board at 13.00 pence per share, valuing Lighthouse at around GBP17.4 million. AFH said the offer represented a 27% premium to Lighthouse's closing share price on March 8, when the stock closed at 10.82 pence.

But AFH said the board of Lighthouse had "disappointingly" declined to discuss the terms of a potential offer and had rejected the indicative bid it had tabled. AFH said it was now considering its next steps in connection to an offer for Lighthouse.

Lighthouse, in a statement published just after the London market close, 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 shares were untraded on Thursday, having last traded at 161.00 pence, giving it a market capitalisation of GBP39.7 million. Lighthouse shares closed up 1.6% to 12.70p, having risen 14% earlier in the day to a new 52-week high of 14.40. It has a market cap of GBP15.6 million.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.