Telit Communications PLC - internet of things and machine-to-machine communications company headquartered in London - DBAY Advisors Ltd says it does not intend to make a firm offer for the firm after Telit rebuffs its initial approach of GBP1.948 per share. On Monday last week, Telit rejected the takeover price from DBAY, but said it was continuing commercial discussions with DBAY and rival bidder u-blox Holding AG about a possible transaction.
The week before, DBAY, Telit's largest shareholder, said it was considering making an offer of GBP1.90 per share for London-based Telit. It later said it had acquired 471,516 Telit shares at GBP1.948 per share, and therefore that would be its minimum offer price for the rest of Telit.
Telit had said in response that an offer at GBP1.948 per share would "fundamentally undervalue" the company. It argued that its trading update published in November had "shown resilience despite continued lockdown measures" across the markets in which it operates and that its share price isn't reflecting this resilience.
In a statement on Tuesday, DBAY says: "Dbay's view in relation to the alternative proposal from u-blox regarding a possible non-binding all-share offer valuing Telit at GBP2.50 per share has not changed and, consequently, Dbay does not intend to accept an offer made by u-blox, if one were to be made on such terms." It holds about 15% of Telit.
Telit has said there is "industrial logic in a combination with u-blox" that could create value for shareholders of both companies, but that any combination would need "to be on terms that reflect Telit's financial performance and position, and be structured in a way that ensures the benefits of the combination would be delivered."
Current stock price: 185.80 pence
Year-to-date change: up 18%
By Paul McGowan; paulmcgowan@alliancenews.com
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