XP Power shares surge on possible takeover offer from Advanced Energy (updated)

Advanced Energy Industries

21/05/2024 10:32

(Adds XP Power comment in paragraph 4, details on offer in
paragraphs 6 and 7, analyst comment in paragraph 8)
       May 21 (Reuters) - XP Power shares  XPP.L  surged as
much as 50% on Tuesday after the power converter solutions
provider rejected a 468 million pound ($594.7 million) possible
all-cash offer from Colorado-based Advanced Energy Industries
 AEIS.O . 
    Shares in Singapore-based XP Power hit their highest level
in more than 10 months at 1,750 pence, leading gains on the FTSE
Small Cap  .FTSC  index.
    The 1,950 pence-per-share conditional, indicative proposal
represents a premium of about 68% to the XP stock's Monday
closing price.
    "The board considered the indicative proposal carefully...
and unanimously concluded that the indicative proposal
fundamentally undervalues the company and its prospects," XP
Power said in a statement.
    This marks the third proposal from Advanced Energy for the
London-listed firm.
    In October last year, Advanced Energy made an all-cash 1,700
pence-per-share offer, and sweetened it to 1,850 pence the
following month.
    The latest proposal was made on May 7, Advanced Energy said,
reflecting the increased number of shares following XP Power's
fundraising in November at 1,150 pence per share.
    Peel Hunt analysts wrote in a note that the latest offer was
"attractive", particularly to those shareholders who entered at
1,150 pence in the recent issue.
    
($1 = 0.7869 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Devika Syamnath)
 ((abyjose.koilparambil@thomsonreuters.com))