Science Group PLC (LON:SAG) looks like it will have a battle on its hands after launching a 35p-a-share cash offer for Frontier Smart Technologies Group Ltd (LON:FST) on Monday.
Science Group, having been in discussions with its fellow AIM-listed outfit about a possible takeover at 30p a share, decided to bypass Frontier’s directors and go straight to shareholders with its proposal.
READ: The full offer announcement
Frontier Smart, the digital radio and internet-of-things technology specialist formerly known as Toumaz, threw some shade at its suitor by saying it is in ongoing talks with a “credible industry player” from which it has received an approach with “a view to executing a corporate transaction which may or may not involve an offer”.
Science Group, which provides science-based product development, advisory and regulatory services, said its broker was standing in the market looking to buy 10mln Frontier shares at the offer price, to increase its current 28.3% stake.
The 35p offer is a premium of 137.3% to the closing Frontier share price at 17 May, the day before Science Group’s initial approach was made public.
Science Group had put itself up for sale last September but cancelled the process as it felt it wasn’t likely to get the best price amid the political and economic uncertainty.
Frontier Smart boldly rose 12% higher to 36.4p in early trade on Monday, while dropping Science was down half a penny to 198.5p.