TP Group PLC (AIM:TPG) shares shot up some 165% in Monday morning’s deals on the news that the company is being bought by Science Group PLC (AIM:SAG) in a premium-priced deal.
Science Group this morning announced it would seek to buy all the TP shares it does not already own in a £17.53mln deal.
The group said the cash acquisition values each share in TP Group at 2.25p per share, a premium of around 190% to the closing price of 0.78p on Friday.
The international science, technology and consulting organisation said it had received support from shareholders representing around 11.7% of TP Group’s shares.
In 2021 Science Group took a 10.2% stake in TP Group at 5p per share and built a holding of 24.1% before talks between the two around a possible bid broke down. It currently holds a 27.97% interest in TP.
In a statement, Science Group said that “there are significant potential synergies with TP Group and a combination would be attractive to the employees and customers of both organisations.”
TP Group recommended the deal to its shareholders stating “the certainty of the cash offer should be weighed against the inherent uncertainty of the delivery of the future value that exists in the business, including general uncertain economic and market conditions.”
In London, TP shares were up 1.28p or 165% changing hands at 2.06p whilst Science shares nudged 2.11% higher to 388p.