XP Power Ltd (LSE:XPP) has received a “possible” all-cash offer from US technology company Advanced Energy Industries for 1,950p per share.
This latest offer values the company at £468 million and represents a 68% premium to XP Power's closing share price and an 82% premium to its 30-trading day volume-weighted average price.
Additionally, the proposal reflects a 70% premium to the 1,150p per share raised during XP Power's November 2023 fundraising.
It follows two previous bids that were rejected by XP Power’s board.
Rallying against the “lack of engagement from the board of XP Power”, Advanced Energy called on shareholders to consider the upped bid, calling it “a compelling and highly attractive opportunity”.
Advanced Energy said the offer valuation “may not be achieved should XP Power remain as a standalone company. Furthermore, XP Power shares trade at low levels of liquidity which continue to prevent shareholders looking for an exit in full to monetise their position”.
"We believe that the proposed offer for XP Power provides compelling value for both Advanced Energy's and XP Power's shareholders," said Steve Kelley, the president and chief executive of Advanced Energy.
"By expanding our portfolio of products and technologies, and combining our technical capabilities, we believe we will be better able to meet the growing needs of our customers."
Advanced Energy said the takeover would provide additional resources to the target while reducing cyclicality and de-risking the business.