LONDON (Alliance News) - The agreed takeover of Tangent Communications PLC by three of its executive directors was disrupted on Friday after investment and management services company Writtle Holdings Ltd said it was considering making a cash offer at a higher price.
Tangent Chief Executive Officer Timothy Green, Chief Financial Officer Jamie Beaumont and Executive Director Nicholas Green made an offer of 2.25 pence per share for Tangent Communications earlier this week which was backed by the other directors at the company that are independent of the bid.
That offer was at a 64% premium to the closing share price of Tangent shares the day before the offer was made, and valued the company at GBP6.7 million.
However, a new bidder may be entering the frame and outbid the current offer after Writtle Holdings, which is focused on media and marketing services companies, said it was considering making a cash bid for Tangent Communications at a significantly higher price of 2.75 pence per share.
"Writtle currently intends to work towards a recommended transaction and to enter into a constructive dialogue with Tangent and its major shareholders and is announcing this proposal as a means to encourage and further this process," said Writtle on Friday afternoon.
"The making of any announcement of a firm intention to make an offer for Tangent is preconditional upon gaining access to carry out satisfactory due diligence," it added.
Writtle released the statement concerning the potential bid moments after Tangent Holdings UK Ltd, the company by which the three directors are making the 2.25 pence per share offer, confirmed it had sent an offer document to shareholders outlining the formal terms of the deal.
On Wednesday, Tangent Communications said the current offer had received acceptances in relation to 154.1 million shares, or around 55.51% of the company's issued share capital.
Tangent shares were up 8.2% to 2.44 pence per share on Friday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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