(Alliance News) - Northern Bear PLC on Thursday said none of its directors are intending to accept the tender offer made by private investor Cedarvale Holdings Ltd.
Northern Bear's directors hold, in aggregate, a 15.9% stake in the company, and will not accept the offer for any of these shares.
Cedarvale, owned by Canadian Jeff Baryshnik, has made an offer for up to 5.4 million shares in the Newcastle, England-headquartered building services firm at 72.00 pence each. If accepted, this would give Cedarvale a 30% stake in Northern Bear and power to veto all special resolutions.
Baryshnik is currently president of Republic Funds USA Inc, which he founded in 2009.
Shares in Northern Bear were up 3.7% at 70.50p in London on Thursday at midday, putting the offer at a 2.1% premium. However, when the offer was made on September 26 it represented a 20% premium to the September 25 closing price.
Cedarvale has said it does not intend to make an offer for Northern Bear's entire share capital.
When the offer was announced, Northern Bear said its board took no position regarding the offer and asked shareholders with doubts to "consult an independent professional adviser duly authorised under the Financial Services & Markets Act 2000 who specialises in advising on the acquisition of shares and other securities before taking any action".
By Anna Farley; annafarley@alliancenews.com
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Northern Bear (NTBR)