(Alliance News) - Shares in FireAngel Safety Technology Group PLC shot up on Friday, after the company said its acquisition by Intelligent Safety Electronics Pte Ltd received conditional regulatory approval.
FireAngel is a Coventry-based manufacturer of smoke detectors, carbon monoxide detectors and other home safety devices. Shares in the company were up 41% at 6.00 pence each in London on Friday afternoon.
In November 2022, FireAngel received an all-share takeover bid from Intelligent Safety Electronics, a subsidiary of Ningbo, China-based fire safety product maker Siterwell Electronics Co Ltd.
Under the terms of the offer, FireAngel shareholders will receive 7.40 pence per share in cash, valuing the entire company at around GBP27.7 million.
In December, the pair requested a suspension of the offer timetable, as they awaited regulatory clearance under the UK's National Security & Investment Act 2021.
On Thursday evening, the secretary of state granted approval of the merger under certain conditions.
Conditions include the pair allowing UK security vetting of certain members of the combined entity's executive committee and board of directors, as well as the appointment of a chief information security officer with UK security vetting clearance.
FireAngel said that ISE is considering whether the approval conditions are acceptable, and that a further announcement will be made shortly.
By Hugh Cameron, Alliance News reporter
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