LONDON: Cicor Technologies Ltd has sweetened its bid for TT Electronics plc, introducing a final all-cash option alongside a share alternative, in a move aimed at addressing shareholder concerns over holding Swiss-listed stock.
Under the revised terms, TT shareholders can receive 150 pence in cash per share or elect to take 0.0084 new Cicor shares, valuing each TT share at the same level. The cash offer represents a premium of 58% to TT’s closing price before the initial announcement on Oct. 29.
The boards of both companies said the revised offer has unanimous support from TT’s directors, who described the terms as “fair and reasonable.” TT shareholders who take no action will automatically receive the cash consideration.
Cicor plans to raise about CHF 75 million through a share placing to help finance the deal, which will be backed by debt facilities totalling GBP 220 million. UBS, advising Cicor, confirmed sufficient resources are available to fund the acquisition.
The acquisition, to be implemented via a UK scheme of arrangement, remains subject to shareholder approval and court sanction. TT directors have pledged to vote in favour of the deal at upcoming meetings.