Inspired PLC has said it would be prepared to support a potential 81p per share, £129 million cash offer from US private equity group HGGC, marking a sharp escalation in the takeover battle for the energy consultancy.
In a joint statement on Tuesday, Inspired and HGGC confirmed they are in detailed discussions over the proposal, which values the company at a premium to an earlier unsolicited 68.5p bid from Regent Acquisitions.
Inspired's board has already urged shareholders to reject Regent’s £109 million offer and described HGGC’s approach as a “superior proposal”.
The board said it would be “minded to recommend” a formal bid on the terms currently under discussion, subject to final agreement on other aspects of the offer.
HGGC, a California-based investment firm, has proposed making the offer through a newly formed company it would control.
The bid would take the form of a conventional takeover offer under UK rules, with an acceptance threshold that excludes Regent and any affiliated holders.
However, HGGC is also considering the option of pursuing a court-sanctioned Scheme of Arrangement, an alternative route often used in friendly deals, if agreed by the Takeover Panel and Inspired.
Inspired noted that HGGC may adjust the offer price to account for a final dividend of 1p per share that was proposed in March. If a firm bid materialises on the current financial terms, the Inspired board said it would likely cancel that dividend to avoid a reduction in the offer price.
“There can be no certainty that an offer will be made,” the company cautioned, adding that shareholders should take no action in relation to Regent’s offer at this time.
Inspired, which provides energy consultancy and sustainability services to businesses, first disclosed the approach from HGGC last week when responding to Regent’s hostile bid.