Spice: Increased Possible Offer From Cinven Undervalues Firm

6th Jul 2010 07:25

LONDON (Dow Jones)--Utility support services group Spice PLC (SPI.LN) Tuesday said it has received an increased conditional proposal from European buyout firm Cinven Group Ltd in the range of 62 to 65 pence a share, but said this offer still undervalues Spice. Last month the company said an indicative possible offer price of 56 pence a share from Cinven Group was opportunistic. Spice said Tuesday that it hasn't entered into talks with Cinven or anyone else about a potential offer for it, saying it is making "excellent progress" in its plan to enhance shareholder value. The firm has undergone a raft of changes in 2010 so far with major shareholder and entrepreneur Simon Rigby stepping down from the chief executive role in February to be replaced permanently in May by Martin Towers. It also sold off its telecommunications business and loss-making gas unit so it can focus on utilities and cut its debt. The company also Tuesday reported its results for the year ended April 30 with pretax profit of GBP16.7 million compared with GBP25.4 million in the same period a year earlier. Revenue increased 11% to GBP310.7 million and a final dividend of 1.22 pence a share has been put forward, up from 1.14 pence a year earlier. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires July 06, 2010 02:25 ET (06:25 GMT)