TI Fluid Declines Offer from ABC Technologies, which Remains Interested

2 min read | September 16, 2024 03:58 AM EDT | By Team Kalkine Media

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TI Fluid Declines Offer from ABC Technologies, which Remains Interested — Image source: Shutterstock

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TI Fluid Systems PLC, (LSE:TIFS) a UK-based car parts supplier, has recently received a takeover offer from ABC Technologies, a private equity-backed firm based in Canada and owned by Apollo. ABC Technologies initially proposed an offer of 165 pence per share in August, which was declined. A subsequent offer of 176 pence per share was made at the beginning of September. At the time of the proposals, TI Fluid Systems shares were trading around 131 pence, although they have since increased. ABC Technologies has stated that its latest offer represents a 41% premium over the average share price in the month preceding its first proposal. This valuation aligns with the share price of TI Fluid Systems from February of this year but is considerably lower than the share price seen before 2022. Despite the premium TI Fluid Systems' board rejected both offers, arguing that they undervalued the company and its future prospects. The board, with input from its advisers, believes the company’s strategic direction and growth potential were not fully reflected in the proposals. TI Fluid Systems noted that the second offer represented a 20.7% premium over its closing share price on Friday, prior to media speculation about a potential acquisition. Historically, TI Fluid Systems' shares traded above 315 pence in 2021 but faced challenges in the subsequent year due to fluctuations in the automotive industry. The share price fell below 100 pence early last year before rebounding to nearly 170 pence in March. ABC Technologies has expressed continued interest in a potential transaction and is reviewing its position following the rejection of its offers. Further developments are anticipated as discussions progress.

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