Vindon Healthcare reveals potential £12m takeover offer
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VINDON Healthcare, the Rochdale-based provider of scientific storage services to the pharmaceutical and life sciences sector, has revealed it is at an “advanced stage” over agreeing terms on a possible £12.2m takeover offer.
Nottingham-based Source BioScience, which carries out genetic analysis and diagnostics, is Vindon’s suitor. In an announcement to the stock market Vindon said Source had indicated the possible offer will be at 13.7p per share, valuing it at approximately £12.2m.
Such a bid would be a premium of 44% to the closing middle market price on Monday, before details of the potential deal emerged.
Key shareholders and executives at Vindon, including Manchester-based financier and investor Richard Hughes who has a 17% stake and Liam Ferguson, Vindon’s executive chairman, who owns 4.56%, have given Source BioScience irrevocable undertakings to accept the possible offer if its is made at the price.
Source, which will have to raise new equity from its investors to fund the potential deal, has until 5pm on August 12 to submit a formal offer under Takeover Code rules.
Manchester-based Zeus Capital is acting as financial adviser to AIM-listed Vindon.
Source BioScience, which is listed on the main London market, said in a separate announcement that its board “believes that Vindon Healthcare represents a significant opportunity” in the context of its growth and stated acquisition strategy.
It added: “The board considers Vindon Healthcare to be an excellent strategic fit with Source BioScience’s business and believes that completion of the possible offer will provide a number of commercial, operational and financial benefits which would be expected to create value for Source BioScience shareholders.”
Among the expected benefits include an enhanced geographical footprint in the US, the UK and Ireland, a broadening of its product and service portfolio, operational benefits from sharing greater infrastructure, an enlarged customer base and cross selling opportunities, and financial benefits.
