Hayward Tyler Group PLC’s (LON: HAYT) shares have surged more than 39% today after confirming it has been approached by Avingtrans plc (LON:AVG) for a possible takeover offer.
The pumps and motor specialist said discussions with engineer Avingtrans were in the early stages and there was no certainty that an offer will be made.
Avingtrans, which supplies engineered components and services to the energy, medical and traffic management industries, has until 5.00pm on 28 April to make an offer.
Shares jumped 39.19% to 51.40p about midday.
Earlier this month Hayward announced a slew of contract wins and said it had extended its deadline for a short-term loan facility.
It has won a US$2.0mln nuclear-related order through its US business for the domestic US market. The group has also secured other new orders through its US operations totalling $8.3mln (circa £6.8mln) from Korea Hydro Nuclear Power.
Hayward said the deadline for repayment for its £2.4mln short term loan facility has been extended again from 31 March 2017 to 30 April 2017. The annualised measurement of the financial covenants has also been put back from 31 March 2017 to 30 April 2017.
The rescheduling will give the specialist engineer and its bank, the Royal Bank of Scotland, more time to ensure a suitable long term financing structure is in place to support the longer term prospects of the business.
The company’s share price took a hit last year after it revealed some orders were taking longer to close than originally envisaged but said it was merely due to delays rather than lost contracts.