TP Group agrees to £17.5m takeover

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  • Science Group will pay 2.25p for each TP share it does not already own
  • That’s a premium of around 190% to Friday’s closing price of 0.78p.
  • The deal ended a bitter bidding battle that began over a year ago.

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AIM-listed TP Group has agreed to a £17.5m takeover by Science Group, ending a bitter bidding battle that first began over a year ago.

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TP shares rose 180% after Science Group said it would pay 2.25p for each TP share it doesn’t already own, about 190% premium to Friday’s closing price of 0.78p.

Science Group, which already owns about 28% of TP’s shares, began building its holding last August when it repeatedly tried to buy the company, but its bids were rejected by TP’s board of directors.

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TP advises the British Antarctic Survey on infrastructure improvements in Antarctica.

TP is a company with a broad mandate: it makes hydrogen fuel cell systems to power the UK’s first hydrogen trains, does helicopter simulations and even provides technical advice to the British Antarctic Survey on infrastructure improvements in Antarctica.

It also operates in the aerospace and defense sectors, with customers including BAE Systems, the European Space Agency, Babcock and the Department of Defense.

The Science Group is a Cambridge-based consulting company offering a range of services, such as advising companies on the regulations they need to comply with in order to bring their products to market.

It also has a division called Frontier Smart Technologies, which manufactures chips for DAB digital radios, which are used in 50 million devices worldwide.

Science Group said in a statement that “there is significant potential for synergies with TP Group and the merger will be attractive to employees and customers of both organizations.”

TP recommended the deal to its shareholders, saying it represented an “acceptable valuation” and provided “cash out confidence” for investors “in a volatile and challenging market environment.”

“The certainty of the money supply should be weighed against the inherent uncertainty of the business about deriving future value, including general uncertain economic and market conditions,” he added.

TP shares rose 180.7% to 2.18 pence by market close on Monday, while Promotions Science Group rose by 4.9% to 398.50 pence.

Credit: www.thisismoney.co.uk /

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