Abingdon Health PLC on Wednesday said the shareholder concert party established at its initial public offering has been divided into three separate parties, although three shareholders are no longer included.
Abingdon shares were up 8.5% at 11.39 pence in London on Wednesday.
The York, England-based company, which specialises in developing and manufacturing rapid lateral flow tests, said the concert party established at its IPO in December 2020 now comprises three separate parties which are distinct and independent for the purposes of the City Code on Takeovers & Mergers.
Abingdon also has agreed with the Panel on Takeovers & Mergers that three shareholders - two individuals and Kaden Biotech Ltd - are no longer included in any of the three new concert parties.
Under the code, a concert party arises where multiple persons co-operate to gain or consolidate control of a company, or to prevent the successful outcome of an offer for the company. At the time of its IPO, Abingdon agreed with the panel that a concert party existed and included founders as well as certain shareholders.
As of August 10, the IPO concert party held 35.2% of the shares in Abingdon. Consequently, no concert party members could buy more shares without triggering an obligation to make a cash offer for Abingdon’s entire issued share capital. Such an offer would have to match the highest price paid by a concert party member during the prior 12 months.
Following the changes, the largest concert party is now the Founder Group, which consists of founders and associates and has an aggregate 18.9% stake in Abingdon. This includes Non-Executive Chair Chris Hand, who holds 10.7%, and Chief Executive Officer Chris Yates who holds 6.5%.
The Duckworth Group, which holds a 14.0% interest, comprises certain investment vehicles associated with shareholder Max Duckworth. Finally the Drayson Group, comprising shareholder Mark Drayson and two associates, holds a 1.8% interest.
Shareholders within the new concert parties can now each acquire further shares without triggering the above-mentioned obligation, as long as such purchases do not bring their party’s total stake does not exceed 30%.
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