(Alliance News) - Tungsten Corp PLC on Monday withdrew its recommendation of a US buyout and backed a GBP61.5 million offer from Gothenburg, Sweden-based Pagero Group AB.
Pagero has offered 48 per share to acquire the AIM-listed electronic invoicing and purchase order platform. The bid price is a 5.8% premium to Tungsten's closing price on Friday and 66% above the closing price on December 13, just before it entered an offer period.
Tungsten shares were 8.1% higher at 49.00 pence each in London on Monday morning, giving it a market capitalisation of GBP61.9 million.
The offer price is 14% higher than a 42p per share bid tabled by Irvine, California-based Kofax Inc. That bid, which valued Tungsten at GBP53.7 million, was initially recommended by the firm. However, Tungsten on Monday said it has withdrawn its backing for the Kofax offer.
Instead, it has agreed to Pagero's GBP61.5 million bid.
Kofax provides invoice processing and accounts payable automation solutions. Pagero provides a cloud-based 'smart business network' that connects buyers and sellers for automated, compliant and secure exchange of orders, invoices, payment instructions and other business documents.
Pagero has the support of 36% of Tungsten shareholders.
Tungsten Chair Tony Bromovsky said: "This offer provides our shareholders with even greater value in cash for their shares, as well as providing Tungsten with a strong and complementary partner to invest in our product development and enhance our offering for our global customer base."
Kofax had first approached Tungsten in December with an offer of 40 pence per share.
By Eric Cunha; ericcunha@alliancenews.com
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