UK car parts supplier TI Fluid Systems has turned down a second takeover bid from a Canadian competitor, valued at over £870million.
The London-listed firm confirmed it had received another unsolicited cash offer from ABC Technologies, supported by US private equity giant Apollo Global Management, for 176p per share on September 4. Previously, ABC had proposed a deal worth 165p per share. Following the news of the latest bid, shares in the Oxford-based TI Fluid soared by 13% in Monday morning trading. However, TI Fluid's board has "unanimously" spurned the approaches.
"The board of TI Fluid Systems considered the proposal in detail with its advisers and unanimously concluded that it significantly undervalued TI Fluid Systems and its prospects, and accordingly the proposal was rejected early last week," the company stated.
ABC Technologies, a Canadian distributor of automotive components worldwide, hasn't closed the door on making further offers. It commented: "ABC Technologies remains interested in a possible transaction and is therefore considering its position."
Under UK takeover regulations, ABC has until October 12 to declare an intention to bid or to withdraw. Should ABC's attempt succeed, it would represent another hit to the London stock market following numerous foreign acquisitions of British companies.
Apollo has been notably aggressive in this area, having recently acquired UK parcel delivery service Evri for £2.7bn. Last year, Apollo also snapped up The Restaurant Group, the owner of Wagamama, while earlier this year, US private equity group Thoma Bravo sealed a nearly £4.3bn deal to take UK cybersecurity firm Darktrace private.
TI Fluid Systems, with its 98 manufacturing locations spread across 27 countries worldwide, specialises in the production of fluid handling and thermal management systems. The company, which was established in 1922, originally started as Harry Bundy and Company.
