(Alliance News) - Science Group PLC on Tuesday refused to raise its offer for TP Group PLC, despite the software consultant rejecting the latest takeover tilt.
Research and regulatory consultancy services firm Science Group has just over an 18% stake in Reading-based TP Group. It has not paid more than 6.5 pence per TP Group share, its current offer price.
TP Group shares were 5.3% lower at 5.73p each in London on Tuesday morning, valuing the company at GBP44.7 million. Science Group shares were up 1.3% at 466.00p, giving a GBP192.2 million market capitalisation.
Science Group said it has been unable to make an official bid, the Cambridge-based firm saying this was due to TP Group not co-operating.
It has, however, made indicative proposals, the latest at 6.5p per share. This offer was rejected on Monday. The offer is a 67% premium to TP Group's share price on August 6, the day before Science Group first invested in TP, it noted.
"Science Group has informed the TP Group board that it does not intend to increase its indicative offer above 6.5 pence per share hence its offer of 6.5p per share is therefore final but reserves the right to do so if a third party announces an offer or possible offer for TP Group," Science Group explained.
TP Group believes it is "well-placed to create shareholder value as an independent company".
Science Group earlier in August made an indicative proposal of 5.8p per share, which TP said "significantly undervalues TP Group".
Science Group added a new threat on Tuesday.
"If the TP Group board continues to refuse to cooperate, and as a result Science Group is unable to make an offer for TP Group, Science Group will retain its shareholding in TP Group as a strategic investment and will adopt an active engagement strategy in relation to its investment," it said.
Back in July, David Lindsay was named as TP Group chief executive. It also said it has spotted a "number of opportunities" to improve its fortunes.
By Eric Cunha; ericcunha@alliancenews.com
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Science Group (SAG)