Walker Crips shares surged 69% to 12.68p after the wealth manager agreed to a recommended cash offer from PhillipCapital, valuing the business at about £5.96 million.
The Singapore-based financial group plans to acquire the company through a court-sanctioned scheme of arrangement, paying 14p a share. That represents an 86.67% premium to Walker Crips' last closing price before the deal was announced.
The offer follows several months of engagement between the two sides. PhillipCapital and its concert party already own just over 29% of the company, although those shares cannot be voted at the court meeting because of their connection to the bidder.
Independent directors at Walker Crips, advised by Singer Capital Markets, unanimously backed the offer and have committed their own small holdings in favour of the scheme. Additional irrevocable undertakings bring total supporting shares to just under 31%.
The board said the proposal offers certainty for investors at a time when the group faces regulatory pressures, liquidity constraints and a looming rights issue linked to a £5 million working capital facility provided by Phillip Brokerage earlier this year.
Without the deal, the company said shareholders risk significant dilution and the costs of a discounted fundraising.