Hotel Chocolat Group PLC (AIM:HOTC)'s share price leapt 160% in early trades this morning after Mars bid to acquire the company.
Its shares were changing hands at about 365.46 pence, up from 140p at the close of trading yesterday.
The rise has brought the luxury chocolate maker’s share price closer in line with the implied valuation of Mars’s bid.
Mars is taking over the company in an agreed deal worth £534 million on a fully diluted basis.
Chocolatier and cocoa producer Hotel Chocolat said in a statement that the offer values its shares at 375 pence, a 169.8% premium to its share price at the close of business yesterday.
"We have long admired the fantastic business that Angus, Peter and the Hotel Chocolat team have created,” said Andrew Clarke, global president of Mars Snacking.
“Hotel Chocolat is a differentiated and much-loved brand, with an impressive product offering and a deep commitment to its values of originality, authenticity and ethical trading.
“The Mars and Hotel Chocolat businesses are highly complementary, and during the course of our discussions with Hotel Chocolat's leadership it has also become clear that there is a very strong cultural fit - with purpose at the heart of both organisations, and a shared passion for quality and sustainability.”
Hotel Chocolat said its directors intend to unanimously recommend shareholders vote in favour of the takeover.