CIP Merchant Capital Ltd - Guernsey-based investment company - Notes Monday's announcement from Corporation Financiere Europeenne SA regarding publishing a document with respect to its mandatory cash offer for shares in CIP not owned by CFE at price of 55 pence each. Maintains advice to shareholders not to take action on offer, and will respond via circular within two weeks. Previously characterised the offer as "hostile" and undervaluing CIP, at a 38% discount to its net asset value of 88.04 pence as of January 21. CIP said on Thursday its board had "unanimously and unequivocally" rejected the offer.
CFE says CIP shares have consistently traded at a "significant discount" to its NAV since June 2018.
The Geneva head-quartered capital market company says offer would be "of interest" to CIP shareholders as it would enable them to exit their investment in full for cash. The offer will be open for acceptance until April 1, but date may be brought forward, CFE says.
Current stock price: 55.63 pence, down 1.6% on Monday
12-month change: down 4.1%
By Elizabeth Winter; elizabethwinter@alliancenews.com
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