The Tangent takeover saga looks to be over – Writtle Holdings has thrown in the towel and will not increase its offer for Tangent Communications.
Writtle issued a statement on Friday afternoon (4 March) in response to the £11.91m bid lodged by Bidco earlier that day, which eclipsed Writtle’s £8.7m offer.
It stated: Writtle announces that, following the mandatory increased cash offer by Tangent Holdings UK Limited ("Bidco") for Tangent, announced earlier today, it does not intend to revise its cash offer of three pence for each Tangent Share which was announced on 29 February.”
Chairman Robert Essex told PrintWeek: “It was a level playing field in the end and I always admire a bold statement. We have no complaints and genuinely wish Tangent well outside the spotlight of the public markets.”
Bidco originally offered 2.25p a share, which valued Tangent at £6.7m. A printing industry M&A expert said the group was “grossly undervalued on their original bid.”
The Writtle offer will lapse on 22 March, at the same time as Bidco’s revised offer also closes.
Writtle said it reserved the right to approach Tangent with respect to a possible offer “in the event that Bidco's offer for Tangent is withdrawn, lapses or does not otherwise complete”.
Tangent's independent directors are now recommending the higher Bidco bid.
Bidco said it had now acquired, or agreed to acquire, Tangent shares that represent 47.99% of the issued share capital of the group.
The takeover saga began on 10 February when it emerged that former TV mogul Michael Green, Tangent's chairman, was backing the management bid to take Tangent private.