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(Alliance News) - Tribal Group PLC's largest individual shareholder said on Monday that it opposes the planned takeover of the company by a US software provider to the education sector.
Jenzabar Inc on Monday said it opposed the planned takeover of Tribal Group PLC by Ellucian Co LP.
Tribal is a Bristol-based educational software and services provider. It received a planned takeover offer worth GBP172.3 million from Ellucian in early October.
Jenzabar Inc, a software company focused on a technology suite for higher education, said it "strongly opposes" the offer. It did not give a specific reason for its opposition. Jenzabar owns a 20% stake in Tribal
Further, Boston, Massachusetts-based Jenzabar confirmed that it is not planning to make a firm offer for Tribal.
Under the cash deal which Tribal recommends, every Tribal share was valued at 74 pence per share, with Tribal valued at GBP159.5 million on a fully diluted basis, giving it an enterprise value, including debt, of GBP172.3 million.
It represented a 41% premium to the closing price of 52.30 pence in London on October 5, the day the offer was made.
In late October, the UK Competition & Markets Authority said it considered a formal phase 1 merger investigation, under which Tribal and Ellucian will produce and finalise a merger notice with the UK competition watchdog.
Tribal shares rose 15% on Monday afternoon in London to 73.02p per share.
By Tom Budszus, Alliance News slot editor
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