Finsbury Food Group (AIM:FIF) PLC has agreed a £143.4 million bid from Isle of Man investment firm, DBAY Advisors Limited.
The 110p per share offer for the UK and European manufacturer of cake and bread bakery goods represents a 23.6% premium to last night’s closing price of 89p.
Finbury called the offer “fair and reasonable”, as it gave its backing to the approach.
“The Finsbury board has carefully reviewed the terms of DBAY's cash offer, and believes it provides shareholders with an accelerated, de-risked opportunity to realise their investment in full and in cash at an attractive premium to both the current share price and the long term weighted average share price,” Peter Baker, non-executive chairman, said.
DBAY is an asset management company based and regulated on the Isle of Man.
It was founded in 2011 and manages a range of funds and co-investment vehicles for endowments, foundations and other institutional investors.
It believes the limited liquidity of Finsbury shares means that the future prospects of Finsbury and its employees would be better served as a private business.