Anexo Group PLC (AIM:ANX) shares dropped 16% on Tuesday after the company announced a tender offer at 60p per share, which is 7p below Monday’s closing price.
The specialist in credit hire and legal services plans to return up to £12 million to shareholders through this offer.
While the tender price is higher than where shares traded before a possible takeover was announced in April, it represents a discount to the latest market price, prompting a sharp sell-off.
Anexo said the 60p price gives an 18% premium to the 17 April closing price and a 14% premium to the one-month average up to that date. Shareholders have the option to sell at the tender price or retain their shares.
The stock fell 10.49p to 56.51p.