Shares of DX (Group) saw a significant rise of 21% following the announcement that the company has received a takeover proposal from H.I.G. European Capital Partners. The proposed value for the business stands at an impressive 293.4 million pounds ($365.8 million), prompting DX to express their readiness to recommend it to shareholders if a formal offer is made.
Proposed Offer Price and Conditions
The London-listed delivery company revealed that the indicated price is 48.5 pence per share, representing a premium of 33% compared to DX's closing share price of 36.50 pence on Friday. Notably, this offer price comes after a series of previously rejected proposals.
However, the final decision on any potential offer rests upon satisfactory due diligence and the fulfillment or waiver by H.I.G. of various pre-conditions. These conditions serve as important factors in determining whether the proposal will proceed.
Time Limit for H.I.G.
Under U.K. Takeover Panel regulations, H.I.G. has until October 9th to either make a formal offer for the company or withdraw their proposal.
The news had an immediate impact on the market, with DX shares experiencing a boost. As of 1345 GMT, the shares were up by 7.50 pence, reaching 44.0 pence.