LONDON (Alliance News) - Drug and medical device company Consort Medical PLC said Monday that plastics products maker Carclo PLC has rejected its non-binding acquisition proposal.
Consort Medical's offer valued each of Carclo share at 116 pence, with the total consideration to be fulfilled issuing new Consort shares.
Carclo shares were trading 13% higher at 91.60 pence each, while Consort shares were untraded on Monday, last closed at 1,192.00p each on Friday.
As of June 29, the valuation implied an exchange ratio of 0.0973 Consort shares for each Carclo share. The proposal was at a premium of 43.6% to the Carclo closing share price of 80.8 pence June 29.
Consort believes the proposal would offer a "number of attractive benefits" to Carclo shareholder. However it said there is "no certainty" it will make a further offer.
Separately, Carclo said on Monday that it discussed the proposal but its board believed that "in no way reflected the fundamental value of the company".
Carclo said its board unanimously rejected the proposal.