TT Electronics Plc. (TTGPF.PK,TTG.L), Friday announced that the company has rejected two acquisition proposals from Volex Plc. (VLXGF.PK,VLX.L), and an all-cash indicative proposal from another party, which was at a significantly higher value than the Volex proposal.
The electronic components manufacturer received the first Volex proposal comprising of 62.9 pence in cash and 0.203 new Volex shares per TT Electronics share, and the second proposal of 62.9 pence in cash and 0.223 new Volex shares per TT Electronics share, valuing the company's share at 129.0 pence and 135.5 pence per share, respectively.
The TT Electronics board unanimously rejected the proposal arguing that it fundamentally undervalued the company and its long-term prospects.
However, the Volex board believes that the second proposal offer a highly attractive opportunity for TT Electronics shareholders to realize both an immediate partial cash exit following the ongoing operational and end market challenges faced by the company.
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