UK's TT Electronics rejects two takeover proposals from Volex (updated)
15/11/2024 07:58
(Adds details from the statement in paragraph 3, background on
TT Electronics in paragraphs 4, 5)
Nov 15 (Reuters) - Volex Plc VLX.L said on Friday that
TT Electronics TTG.L had declined to engage with it and
rejected two takeover offers it had submitted to the British
electronic components maker.
Volex, the maker of power products and data connectivity
cables, said the latest cash-and-stock proposal valued TT
Electronics at 248.6 million pounds ($315.18 million), while the
first offer comprised 62.9 pence in cash and 0.203 new Volex
shares per TT Electronics share.
Hampshire-headquartered Volex said it firmly believes that
the terms of the second proposal offer a highly attractive
opportunity for TT Electronics shareholders to realise both an
immediate partial cash exit, following the ongoing operational
and end market challenges faced by TT Electronics.
Woking-headquartered TT Electronics is facing operational
issues and subdued demand in North America, with an increase in
costs and has signalled at a slow recovery in group order intake
through 2025.
TT Electronics on Thursday cut its annual adjusted operating
profit forecast for the second time within two months and now
expects it to be at the lower end of a 37 million pounds-42
million pound range.
In the year to date, TT Electronics' stock has halved in
value to 79 pence.
($1 = 0.7888 pounds)
(Reporting by Shanima A in Bengaluru; Editing by Abinaya
Vijayaraghavan and Rashmi Aich)
((shanima.a@thomsonreuters.com; (Direct: +91 72 5956 7774);))