XP Power rejected Advanced Energy Industries' premium-priced takeover offer, calling it opportunistic. The offer valued XP Power at £468 million and implied a share price of £19.50.
London-listed electric components firm XP Power (LSE:XPP) saw its stock close Tuesday’s session up 47%, at 1,720p, after it rejected a premium-priced takeover offer, describing it as ‘opportunistic’.
Advanced Energy Industries (Nasdaq: AEIS), in a public statement in the UK, announced it had so far made three offers – with the most recent pitched at £19.50 per share, valuing the company at £468 million.
The AEIS offer ‘fundamentally undervalues the company and its prospects’, XP said.
AEIS, meanwhile, said each of its three offers were priced at a significant premium to XP’s share price at the time, but there had been a lack of engagement from the XP board.
The American firm added that its latest offer “represents a compelling and highly attractive opportunity”.
It meanwhile threatened that the company would “remain disciplined” when considering any potential acquisition.
“Advanced Energy believes that the Latest Proposal provides a unique opportunity for XP Power's shareholders to realize, on completion of the possible offer, the value of their shareholdings in cash at a highly attractive valuation.
“This valuation may not be achieved should XP Power remain as a standalone company,” it added.
