AIM-listed manufacturing specialist Volex PLC (AIM:VLX) has been twice rejected in its attempts to acquire smaller rival TT Electronics for a substantial premium, it has emerged.
Volex disclosed that it has tabled two cash-and-share offers, the first valuing TT at 129p per share and the second at 139.6p per share.
The latter offer represents a 77% premium to TT’s Thursday closing price.
According to Volex, TT’s board has declined to engage with the proposals, despite the bumper premium offered to shareholders.
In tabling the offers, Volex took numerous swipes at TT’s leadership.
Volex chairman Nathaniel Rothschild stated: “Despite the resilience of TT Electronics' underlying business, it has faced persistent challenges in recent years, which Volex believes have been exacerbated by execution missteps by the board, including former and current executive leadership.”
Rothschild blamed TT’s 10-year-low share price on these missteps, particularly an acquisition strategy that has “resulted in very disappointing outcomes”.
He added: “We believe that bringing Volex and TT Electronics together in a highly synergistic transaction would create a diversified leader in the specialist electronics market which would act as a platform for future organic and inorganic growth and significant value creation.
“TT Electronics would benefit from being part of a larger group with complementary capabilities and the associated opportunities for revenue and cost synergies to deliver higher profitability.”
TT downgraded its full-year guidance in September. It has yet to comment on the proposed bids.