(Alliance News) - CIP Merchant Capital Ltd on Friday said it has received a GBP30.3 million takeover offer from shareholder and Luxembourg-based investment banking boutique Corporation Financiere Europeenne SA.
Earlier, CFE had agreed to buy 1.1 million shares at a price of 55 pence per share, which will bring its interest in the Guernsey-based investment company to 32% from 30%.
Shares in CIP Merchant Capital closed up 0.5% at 51.25 pence on Friday in London, reflecting a market capitalisation of GBP28.1 million.
Due to the share purchase, under Rule 9 of the Takeover Code CFE is required to make a cash offer for all share in CIP Merchant it does not already own.
Under the offer's terms, shareholders in CIP will receive 55 pence in cash per share, which reflects a 7.8% premium to CIP's closing price on Thursday at 51.0p.
The acquisition is conditional on gaining at least 50% of valid acceptances for the offer from CIP shareholders.
"Due to the size and market positioning of CFE, it is ideally placed to execute such a transaction and can offer certain value today for CIP's portfolio of assets, which would represent a compelling opportunity for CIP Shareholders to realise a premium to the current trading market value of their CIP Shares. CFE believes this is an attractive offer in particular due to the low levels of liquidity in CIP's shares and hence the challenges Shareholders would currently face should they look to sell their entire holdings in the market," the company stated.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
