Source - SMW
Employment background verification company ClearStar said it had accepted a £14.7m takeover from a Hanover Investors.
 
The 40p-a-share offer, which valued the company at about £14.7m, represented a premium of 23% to the company's most recent closing price.
 
Under the terms of the agreement, as an alternative to the cash offer, ClearStar shareholders holding 25% or more of the voting rights in ClearStar would be entitled to receive two Hanover Bidco shares for every five ClearStar Share.
 
'The Hanover offer provides us with the financial certainty to continue building our business and enable our employees to play a major role in transforming our industry for the benefit of our customers,' the company said.
 
Hanover Bidco has received undertakings and a letter of intent for 20,185,225 ClearStar shares, representing approximately 55.5%,' the company said.
 
'Accordingly, the ClearStar Independent Directors intend to unanimously recommend that ClearStar shareholders accept the offer and elect for the cash consideration,' it added.
 
In a separate statement, the company provided an update on first-half performance showing wider losses amid a fall in revenue owing to the impact of the pandemic.
 
For the six months ended 30 June, pre-tax losses widened to $1.2m from $0.9m on-year as revenue declined to $8.9m from $11.6m.
 
'The board is encouraged by the significant revenue recovery and strengthening financial position, however, with the continued uncertainty around the length of the pandemic and its economic impacts, it remains cautious about the near-term outlook,' the company said.
 
    
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