EQN.L Share News (EQN)

(Sharecast News) - Equiniti said it was likely to accept a takeover approach from Siris Capital valuing the company at about £660m after the private equity group increased its proposed offer.
The business services and payments company said it received a non-binding approach from Siris to pay 180p a share in cash for all its shares. The proposal tops the 170p-a-share approach Equiniti reported on 19 April.

Equiniti said: "The Board of EQ ... has considered the revised proposal and has confirmed to Siris that it would be minded to recommend a firm offer for EQ to EQ shareholders if made by Siris on the financial terms of the revised proposal."

The company's shares rose 8.3% to 175.92p at 09:54 GMT, valuing the company at £647m.

Siris, a US-based buyout firm, is said to have made several approaches to Equiniti. Reports had suggested its 170p approach would be its final attempt to get Equiniti's board to cooperate.

Equiniti said it would open up its books for Siris to examine and that a firm offer was conditional on Siris's due diligence checks and other conditions. The company said it had agreed to work with Siris so it could complete its checks as soon as possible.

Equiniti reported a £6.6m annual pretax loss on 1 April as revenue fell sharply during the pandemic. US private equity groups have been on the lookout for purchases in the UK where valuations have not recovered at the same pace as in the US as the pandemic has eased.