Nat Rothschild’s Volex is withdrawing from its attempted takeover of smaller competitor TT Electronics
Nat Rothschild’s Volex has scrapped a takeover of smaller competitor TT Electronics.
The AIM-listed components manufacturer said a £248.6m bid was rejected.
Rothschild, Volex’s executive chairman, said he “will not proceed with an offer as it is now clear that the board of directors of TT Electronics is not prepared to recommend an offer at a valuation that is also acceptable to Volex.”
Volex is “resolutely disciplined in the way it allocates capital,” he added.
Deal is done: Volex executive chairman Nat Rothschild said the company would not proceed with a bid for TT Electronics
TT noted the statement and said the board “remains confident in the medium-term financial framework of the company.”
Volex had made two proposals, one at a price of 129p per TT Electronics share, and a second at 135.5p.
Shares in TT Electronics fell 8.9 percent, or 10.5p, to 108p, while Volex rose 5.8 percent, or 16.5p, to 303p.
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