Eleco accepts a cash takeover offer at a 75% premium

Eleco’s ($ELCO) board recommended a cash offer from Avocet Bidco, an acquisition vehicle backed by Accel-KKR, at 235 pence per share. The proposal values the company’s equity at approximately £207.6 million and its enterprise value at £192.4 million. The offer price represents a 74.7% premium to the reference closing share price of 134.5 pence.

The transaction would place the construction-software business under private ownership if the proposed scheme of arrangement is completed. Irrevocable commitments and letters of intent together cover about 45.2% of the shares, although these are not all equivalent to unconditional voting commitments. Shareholder and court approvals remain necessary. Investors therefore have a firm recommended offer to assess, rather than only an expression of takeover interest, but completion is still conditional.

Sources:

• Eleco / Accel-KKR — recommended offer, RNS