Tavistock Investments has rebuffed a £15.2m bid from Jersey-based fund manager Team.
According to a stock exchange statement, Team approached the board of Tavistock Investments regarding a possible offer for the company on 11 March 2021.
In its letter, the Jersey firm requested that the board of directors of Tavistock “engage” with the company and “provide access to mutual due diligence, to see if the terms of a recommended offer could be agreed upon”.
On 15 March 2021, Team was notified by Tavistock that it would not engage with the fund or provide access to due diligence materials.
The board of directors of Team believe that the Tavistock shareholders “deserve the opportunity to decide on the merits of any offer, and that if an approach is made in good faith, the Tavistock board should act in the interests of its shareholders by engaging with the potential offer and not deny its shareholders this opportunity”.
Team states the case for merger benefits
Team made a confidential offer to Tavistock Investments, bidding 2.50p per ordinary share based on the share price at that time.
The offer covered all issued and to-be-issued ordinary shares of Tavistock, and was equivalent to a total equity value of the wealth firm at £15.2m.
Team believes that a combination of the two companies could “have the potential to transform the investment proposition for Tavistock shareholders as a result of greater scale, a clean and fresh investment thesis, a more liquid market in the shares, a stronger balance sheet and significantly improved access to equity and debt markets”.
The fund manager went public on 8 March, raising £7.8m, and aims to become an “internationally recognised wealth and asset management group”.
Tavistock Investments is an Aim-listed financial services group with 180 advisers across the UK helping more than 30,000 clients look after more than £3bn of investments.
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