UK-listed components manufacturer TT Electronics yesterday agreed to a £287millio takeover by Swiss rival Cicor – after last year snubbing an approach led by Nat Rothschild.
The deal is another blow to the City which has seen a flurry of foreign takeovers depleting the ranks of the stock market. But it is being resisted by investment firm DBay Advisors, TT’s biggest shareholder with a 16.5 per cent stake.
It said it was ‘happy with the progress the business is making’ and would not back the deal.
TT was last year targeted by Rothschild’s firm Volex – but rejected a £249million offer. Yesterday, it said it had reached an agreement with Cicor at a higher value.
The companies said the offer was at a 64 per cent premium to TT’s share price on Wednesday. The stock rose 60.1 per cent, or 57p, to 151.8p yesterday.
TT Electronics shareholders are expected to vote on the deal in December.
Chairman Warren Tucker said its ‘insufficient scale’ held back growth and profitability while making it more vulnerable to global economic risks.
Takeover: UK-listed components manufacturer TT Electronics has agreed to a £287m buyout by Swiss rival Cicor
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