(Alliance News) - Hanover Acquisition Ltd on Monday said it has built a 46% stake in Brady PLC and, as a result, its increased 18 pence per share offer for the trading and risk management software provider is now a recommended mandatory final cash offer under UK takeover rules and will not be raised further.
The investment vehicle, which earlier Monday upped its cash takeover offer for Brady amid a potential counterbid for Brady, said it purchased 21.9 million Brady shares from Kestrel Partners LLP and 16.5 million shares from Coltrane Master Fund LP at the new 18p takeover price.
The raised offer values the entire share capital of Brady at GBP15 million.
Following the share purchase, Hanover owns 38.4 million shares, representing 46.1% of Brady's share capital.
Earlier in October, Brady agreed to a 10p per share cash takeover offer made by Hanover Acquisition, a vehicle of Hanover Active Equity Fund II Sca SICAV-RAIF, valuing the firm at GBP8.3 million.
Shares in Brady were up 46% at 17.48p each in London on Monday afternoon, giving it a market capitalisation of GBP14.6 million.
Brady separately on Monday morning said it has received an approach from a undisclosed potential new bidder for the company, which may result in a counterbid to Hanover's offer
Brady stressed that there is no certainty that an offer will be made by the new potential bidder and that talks with the undisclosed party remain at an early stage. The new suitor has until December 9 to either make an offer for Brady, or walk away, in accordance with UK takeover rules.
Brady also said that the Hanover merger offer was extended to November 29, as Hanover did not receive the required over 50% valid acceptances for its offer. At the end of Friday, Hanover had received valid acceptances in respect of just 1.4% of the issued share capital of Brady.
By Tapan Panchal; tapanpanchal@alliancenews.com
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