Restore PLC - Redhill, England-based document management, commercial relocation and IT recycling business - Confirms unanimous rejection of takeover proposal from London-based safety services and software provider Marlowe PLC, believing the offer significantly undervalues Restore, "considering its current and future prospects", and that the combination is not strategically compelling.
"Marlowe's approach significantly undervalues Restore's current and future prospects and the board believes that the structure, with a very significant element of Marlowe equity, brings material risk to Restore's shareholders. I would remind shareholders that only 71 pence of the Marlowe proposal is in cash," comments Non-Executive Chair Martin Towers.
In late July, Restore confirmed that Marlowe had approached the company over a possible takeover offer worth 530p per share. This was the second proposal made to the board over the last few weeks and both were rejected.
The second proposal would have been an offer consisting of 71p in cash and the remainder in Marlowe shares, while the first proposal was worth 515p per share.
On Tuesday, Restore confirmed that 33% of shareholders did not intend to accept the Marlowe offer.
Current stock price: 505.00 pence
Year-to-date change: up 22%
By Will Paige; willpaige@alliancenews.com
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Marlowe (MRL)
Restore (RST)