Defence contractor-turned-software consultancy TP Group (TPG:AIM) saw its share price plunge by more than 6% to 4.98p on Monday after potential buyer Science Group (SAG:AIM) threatened to walk away from a deal.
Science Group said it had made an offer to TP’s board that was at a ‘significant premium to the prevailing 3.9p share price’ before Science Group acquired a 10.2% stake in the business on 6 August. That offer was rejected without any discussion or engagement, claims Science Group, which has accused TP’s board of continuing to refuse talks.
Science Group described TP’s decision to reject its takeover advance as ‘indefensible,’ and it is now calling for a shareholder vote to remove chairman Andrew McCree and independent director Jeremy Warner-Allen.
BOARD ‘OBSTRUCTIVE’ CLAIMS POTETNIAL BUYER
Science Group made its offer to TP on 12 August. ‘In the context of the financial performance of TP Group, the obstructive approach of the board is indefensible,’ Science Group said on Monday.
‘For the avoidance of any doubt, Science Group has not withdrawn its interest in potentially making an offer for TP Group.’
Science Group added, however, that it was unlikely that it would be able to make an offer ‘if the TP Group board continue to refuse to cooperate’.
In June 2020, TP’s shares had traded above 8p but the stock had fallen to lows of 3.3p as of 23 July 2021.