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Stadium Group shares jump over 40% higher on agreed takeover by TT Electronics

Last updated: 09:20 15 Feb 2018 GMT, First published: 08:46 15 Feb 2018 GMT

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Stadium also said that a special dividend of 2.1p per share would be paid to its current shareholders

Stadium Group plc (LON:SDM) was the market's top gainer in early trading today, spiking over 40% higher after the healthcare applications technology provider agreed to a 120p a share cash takeover bid from TT Electronics PLC (LON:TTG).

The AIM-listed firm's shares shot up by nearly 42% to 118.5p, just below the bid level, with the offer valuing the company's issued share capital at £45.8mln.

READ: Stadium Group acquires industrial power supply firm PowerPax UK for £2.8mln in cash

Stadium Group also said that a special dividend of 2.1p per share would be paid to its current shareholders within 14 days of the takeover-completion date.

Stadium's chairman, Nick Brayshaw, said: “The strategic fit with TT is strong and the Stadium Board believes that the combined business provides considerable scope for accelerating the development of Stadium's strategy, strengthening the foundations to grow significant shareholder value whilst continuing to broaden the opportunities for our people, our customers and our products.

READ: Strong first half for Stadium Group as revenues, order book grow

TT said the takeover will be funded entirely from it's existing cash resources and committed bank facilities and the FTSE All-Share listed expects the deal to be immediately earnings enhancing.

Shares in TT Electronics rose 3.6% to 217.5p.

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