(Alliance News) - Xpediator PLC said on Tuesday it had received an indicative offer from a consortium including its former chief executive Stephen Blyth. The Braintree, England-based freight management services provider said the consortium was offering 42 pence per Xpediator share in cash, with a partial loan note alternative. Shares in Xpediator surged 20% to 36.41p on Tuesday after the offer following recent media speculation, handing it a valuation of GBP51.58 million.
Xpediator said its board understood that the consortium intended to effect the proposal by way of a scheme of arrangement. It added it reserved the right to implement the proposal, instead, by way of contractual offer. Apart from Blyth, the consortium also included the company's largest shareholder Cogels Investments Ltd, funds managed by Baltcap, one of the largest private equity investors in the Baltic states, and Justas Versnickas, the managing director of Delamode Baltics, a subsidiary of Xpediator.
The group said it understood that the consortium had received non-binding letters of support for the proposal from its two largest independent shareholders, Shaun Godfrey and Sandu Grigore, who are interested in 38.5 million shares, representing about 37% of the shares held by independent shareholders, and approximately 27% of the total issued share capital of the company. It also noted that Cogels was interested in 37.8 million shares, representing about 27% of the total issued share capital of the company. But if the proposed deal were to be effected by way of a scheme of arrangement, Cogels's shareholding would be ineligible to vote on the implementation of the proposal.
The transaction, if it was to proceed to a formal offer, is subject to the satisfaction or waiver of a number of customary pre-conditions, including completion of due diligence, and the finalisation and documentation of financing for the transaction. Xpediator said remained confident in its prospects as a stand-alone listed business. It was, however, evaluating the proposal together with its financial adviser, Zeus Capital Ltd.
By Artwell Dlamini, Alliance News reporter Comments and questions to EMAIL Copyright 2022 Alliance News Ltd. All Rights Reserved.