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Equals Group plc (LSE:EQLS) has announced an improved indicative non-binding proposal from a consortium consisting of Embedded Finance Limited (Railsr) and TowerBrook Capital Partners (U.K.) LLP (Towerbrook). The consortium has proposed an all-cash offer for the entire issued and to be issued share capital of Equals at a price of 135 pence per share. This proposal is subject to the completion of final due diligence and acquisition financing by the consortium.
Key Developments
Due Diligence and Financing Progress: The consortium has substantially completed its due diligence and is in advanced discussions with its preferred party regarding the financing of the proposal.
PUSU Deadline Extension: To provide additional time for the consortium to finalize due diligence and secure acquisition financing, the Board of Equals requested an extension of the current deadline from the Panel on Takeovers and Mergers. The Panel has granted this extension, moving the "put up or shut up" (PUSU) deadline to 5.00 pm on 4 September 2024.
Next Steps: The consortium is required to either announce a firm intention to make an offer for Equals in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer by the revised deadline. This PUSU deadline can be further extended with the consent of the Panel, at Equals' request, in accordance with Rule 2.6(c) of the Code.
Implications and Outlook
The proposal of 135 pence per share represents a significant premium to the current trading price of Equals shares, reflecting the consortium's confidence in the company's value and potential. However, the completion of the offer remains contingent on the successful finalization of due diligence and acquisition financing.
No Certainty of Offer: Despite the progress, there remains no certainty that an offer will be made. Shareholders and stakeholders are advised to remain informed of further announcements.
