Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) has urged shareholders not to accept a mandatory offer from major shareholder AOP Health that has arisen following the conversion of a shareholder loan.
AOP, which currently holds 29.9% of Shield‘s share capital, has offered 6.2p per share in cash for the shares it does not own, a price around 18% lower than in the market currently (7.6p).
Following the conversion of the loan, AOP’s holding will rise to 41.9%.
Shield’s directors added they do not regard the mandatory offer as hostile.