Alpha Financial Markets Consulting PLC (AIM:AFM) shares soared 37% after it confirmed it is a potential takeover target for two investment firms.
An update from the company came hours after reports indicated bidders were circling the company.
Bridgepoint Advisers, the investment group, and Cinven, the private equity firm, were both said to be interested in the financial consultancy company.
Alpha Financial’s board said it had received a non-binding indicative proposal from Bridgepoint regarding a cash offer for all existing and to-be-issued shares.
This offer is subject to several pre-conditions such as the requirement to complete due diligence.
Meanwhile, Cinven is interested in the company but has yet to make an indicative proposal.
The two London-based investment companies now have 28 days until May 29 to either confirm their intentions to make an offer or walk away from the deal.
Reports also said financial investor New Mountain Capital was also interested in a purchase but there was no mention of the company in Alpha’s update.
Alpha Financial has more than 900 consultants situated around the world and before today was valued by the market at £380 million, with the suggestion that a takeover premium could lift this to around £500 million.
Shares in the group had dropped by over a quarter in the last twelve months.