PrintWeek understands that Writtle lodged a cash offer of 3p a share yesterday evening (26 February), and shareholders are in possession of the details.
This is a 33.3% premium on the offer that was made for AIM-listed Tangent by members of its existing management team on 10 February via their ‘Bidco’ vehicle Tangent Holdings UK.
The Writtle offer values Tangent at more than £8.7m and PrintWeek also understands that as a result it has become the new recommended bid for the business, and has been recommended by Tangent’s independent directors and the PLC’s financial advisers under Rule 3 of the Takeover Code.
Writtle originally said that it would offer no less than 2.75p a share, subject to receiving the necessary information to carry out due diligence. It subsequently complained about the time taken for that information to become available.
A regulatory announcement about the formal offer is expected first thing on Monday morning.
Writtle’s offer could spark a bidding war for £26.25m turnover Tangent, which employs around 300 staff in London, Cramlington and Cheltenham. It is not yet known whether Bidco, which is backed with a £7m loan from Tangent chairman Michael Green, will respond by increasing its offer.
Tangent’s shares closed at 2.4p on Friday.
Writtle Holdings has turnover of £83m and owns a portfolio of print, pre-media and marketing businesses including Magnet Harlequin, Creo Retail Marketing, Arken Pop, and Technik.
PrintWeek could not reach Writtle or Bidco for comment at the time of writing.
