Offer for patents firm
Murgitroyd poised to recommend £61m bid from Sovereign
Murgitroyd board would recommend the offer
Patents company Murgitroyd has received a £61 million indicative takeover offer from Sovereign Capital Partners.
The Glasgow firm’s board confirmed this morning that it was in “advanced discussions” following a leap in the shares.
They closed last night at the proposed offer price of 675p in cash, valuing the company at £60.8m. The proposal assumes that the recently announced final dividend of 15p per share will be paid to shareholders on the register as at close of business on 11 October as anticipated.
The board noted that there can be no assurances that an offer will ultimately be made for the company but would be prepared to recommend the proposed bid.
Under Takeover Panel rules Sovereign must state its intentions by the close of business on 12 November.
In a statement, Murgitroyd stated: “Discussions with Sovereign are at an advanced stage with due diligence enquiries complete.
“The board confirms that, should Sovereign or an entity controlled by Sovereign announce a firm intention to make an offer…on the above terms, the board’s current intention is to recommend that Murgitroyd shareholders accept the offer.”