LONDON (Alliance News) - Technology recruitment and outsourcing firm Harvey Nash Group PLC on Tuesday said it has agreed a takeover by shareholder DBAY Advisors Ltd worth GBP98.7 million.
The Power of Talent Ltd, which is a new entity set up by DBAY, has offered 130 pence per share for each Harvey Nash share, plus an interim dividend from Harvey Nash of 1.75p per share.
This offer, Harvey Nash said, is a 92% premium to its closing price on March 6, 2017, the day before DBAY announced it had a significant holding in Harvey Nash. It currently has a 26% stake, making it the recruitment firm's biggest shareholder.
Harvey Nash shares were trading at 130.06p on Tuesday morning, 17% higher. The takeover is conditional, amongst other things, on Harvey Nash shareholder approval.
Harvey Nash Chairman Julie Baddeley said: "Harvey Nash's acquisition strategy and successful transformation programme has resulted in significant shareholder value being created over the past two years.
"The independent Harvey Nash directors have considered carefully the offer from DBAY, which was the result of a period of negotiation. Whilst the independent Harvey Nash directors believe Harvey Nash would have a strong future as an independent listed company, they consider the offer, which is wholly in cash, represents attractive value and is in the best interests of Harvey Nash shareholders, staff and clients."
She added: "In addition, DBAY offers stability to all Harvey Nash's stakeholders and has stated it intends to support Harvey Nash's employees and invest in the business as it moves to the next stage of its development."