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The Board of TI Fluid Systems (LSE:TIFS) has announced its rejection of a second unsolicited and non-binding all-cash proposal from ABC Technologies Inc., a company majority-owned by investment funds managed by Apollo Management IX, L.P. The proposal, received on 4 September 2024, offered to acquire TI Fluid Systems at a price of 176 pence per share, following an earlier offer of 165 pence per share.
Second Proposal Represents a 20.7% Premium
The latest proposal represented a 20.7% premium to TI Fluid Systems’ closing share price of 145.8 pence on 13 September, just before rumors of a potential offer emerged. Despite the premium, the Board of TI Fluid Systems, after a detailed review with its advisers, unanimously concluded that the offer significantly undervalued the company and its long-term prospects.
Strategic Dismissal
In light of its view that the proposal did not reflect the full value of the business, the Board rejected the offer early last week, signaling its confidence in the company’s future growth and potential. TI Fluid Systems will continue to focus on executing its strategic plans to drive value for its shareholders.
