DX Group extends deadline for possible acquisition by HIG

9th Oct 2023 11:33

(Sharecast News) - DX Group updated the market on its discussions over a potential all-cash acquisition offer from HIG European Capital Partners on Monday, confirming that the deadline for an offer had been extended.

The AIM-traded firm first announced the discussions on 11 September, reporting that HIG, in its advisory capacity to HIG Capital, could extend an offer for the entirety of DX's issued and to-be-issued share capital.

HIG was initially bound by the Takeover Code to reveal, by no later than 1700 BST on 9 October, a definitive intent to offer or disclaim any intention to make such an offer.

DX said the conversations had developed positively, supported by both the management and board of DX, as HIG had significantly progressed in its confirmatory due diligence and preparation of requisite documentation to establish a firm offer.

To assist HIG in finalising its due diligence, DX solicited and subsequently received approval from the Takeover Panel for an extension to the 'put up or shut up' (PUSU) deadline.

As a result, HIG was now obliged to declare, by no later than 1700 GMT on 6 November, either a solid intention to present an offer for DX or to announce that it would not make an offer formally.

"This revised deadline may be extended further, at the request of the board of DX and with the consent of the Takeover Panel," the company said in its statement.

"There can be no certainty that a firm offer will be made.

"A further statement will be made when appropriate."

At 1249 BST, shares in DX Group were up 0.59% at 42.5p.

Reporting by Josh White for Sharecast.com.