(Alliance News) - Kinovo PLC on Thursday announced its receipt of a possible offer from Rx3 Holdings Ltd, which shares an owner with its largest shareholder.
The London-based specialist property service provider, which delivers safety compliance and sustainability solutions, acknowledged the non-binding indicative offer from Rx3 Holdings Ltd.
Kinovo said this "may or may not lead" to Rx3 making a firm offer for its entire share capital, for a cash consideration of 56 pence per share. It said it "has proactively engaged with Rx3," and has commenced consultations with its key shareholders.
Shares in Kinovo were up 9.3% at 53.00p on Thursday afternoon in London.
Kinovo noted that the possible offer is "at the lower end of the board's expectation." However, it admitted that the offer has also been communicated as being final, and that the board has so far been unable to negotiate a higher price.
The company said Rx3's pre-conditions for the possible offer include "no material change in the outlook of the DCB Kent construction projects." DCB Kent Ltd, which provides building, refurbishment and maintenance services in the South East of England, was acquired by Kinovo in 2016.
Kinovo added that Rx3 owner Tim Scott also owns Tipacs2 Ltd, which holds around 29.89% of shares in Kinovo. Tipacs2 purchased approximately 4.2% of the shares during the last 12 months, resulting in its current stake and cementing its position as Kinovo's largest shareholder. The second largest, Ruffer LLP, holds about 7.13%.
Consequently, as Kinovo noted, Tipacs2 "[has] a substantial level of influence over the company."
By Emma Curzon, Alliance News reporter
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Kinovo Plc (KINO)