Source - Alliance News

Tern PLC on Wednesday reported that Pires Investments PLC has agreed to its all-share takeover offer to create a larger company with greater scale.

Shares in Tern were trading 13% lower at 13.50 pence each on Wednesday in London. Pires shares meanwhile were 14% higher at 5.91 pence.

The investor focused on the internet of things said that the deal values the entire equity of Pires at around £14.9 million.

The market capitalisation of the enlarged group is valued at around £69.5 million, Tern said.

For each Pires share, Pires shareholders will receive 0.51613 new Tern shares. After completion of the acquisition, shareholders will own roughly 22% of the enlarged issued share capital of Tern.

Tern said it believes that there is considerable ‘unlocked’ potential in the Pires portfolio that could quickly be realised with ‘its hands-on approach and wide network of connections.’

‘We are delighted to be announcing the proposed acquisition of Pires. Combining Tern and Pires will, I believe, deliver benefits to the shareholders of both companies. It will create a group with larger scale and a more diverse, but synergistic, network of exciting technology companies,’ Tern Chief Executive Al Sisto commented.

Pires’ Non-Executive Director Nicholas Lee added, ‘We are very excited about the combination with Tern as this will enable us to rapidly generate value and liquidity for our shareholders whilst, at the same time, allowing them to share in the upside that we expect to be created through a combination of the two companies and their respective investment portfolios.’

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