Tavistock Investments has received letters from 17 different shareholders stating their intention to reject the possible all-share offer by Team.
The Jersey-based investment firm approached Tavistock on 11 March 2021 with an offer for the business worth approximately £15.2m ($21m, €17.5m).
The letters of intent from the shareholders represent 24.88% of the company’s issued share capital, in addition to the board of Tavistock which own 16.01% of the business.
This takes the total percentage of shareholder votes against the deal to over 40%.
Tavistock’s board said in a London Stock Exchange statement on 15 April 2021 that the “approach made by Team is without merit”.
It believes the offer “significantly undervalues Tavistock’s business”, there is no “commercial logic to justify a combination of the two businesses”, and it “does not consider that a paper-only offer is in the interests of the company’s shareholders”.
This comes after Team said it had received non-binding letters from Tavistock shareholders, representing a 15.03% share of the company, stating they were keen to proceed with acquisition negotiations.
