The Tavistock Investments PLC (LON:TAVI) board has reiterated its view that the takeover approach by Team PLC is “without merit”.
Yesterday, Team, which owns TEAM Asset Management and which completed its IPO earlier this month, announced it had received letters of intent from six shareholders of the company in support of its proposed deal.
Tavistock noted the non-binding letters were from six out of the 352 registered shareholders and represented in aggregate 7.44% of the company’s issued share capital.
The board of Tavistock told investors it is dismissing the 23 March approach by Team as it feels it “significantly undervalues” the business, believing there is no commercial logic to justify a combination and that a paper-only offer is not in the interests of the company’s shareholders.
In recent weeks, the wealth manager has rejected two approaches from Team, with the most recent being a proposed offer of 1 new Team share for every 35 Tavistock shares owned, which equates to almost 2.5p at the last close price.
Team’s shares closed overnight at 87p while Tavistock’s were at 2.3p.
But its directors advised shareholders to take no action.
Team has, under the London stock market’s ‘put up or shut up’ rules, until 5pm on 20 April to make a firm offer or walk away.