Microgen agrees revised bid for Trace

Microgen agrees revised bid for Trace

UK IT services firm Microgen says it has agreed terms of an increased recommended cash offer of 180 pence-per-share for banking and securities software vendor Trace Group.

Microgen has raised its offer from a previous 155 pence-per-share proposal made on 1st June.

Trace said on 20 April that it had agreed a 135 pence-per-share takeover bid from management buyout vehicle Tulip Holdings. But shortly afterwards Microgen disclosed that was in talks about a counter offer for the vendor and followed up with the 155 pence-per-share bid.

Tulip came back with an increased bid of 156 pence-per-share, but Microgen has trumped that offer with its new 180 pence-per-share bid.

The latest Microgen offer represents a premium of approximately 101.1% to Trace's closing price of 89.5 pence on 19 April - the day before the first Tulip bid was disclosed.

The bid is 14% higher than Tulip's second offer and values the Trace business at £25.6 million.

Microgen says it currently holds around 24.95% of Trace Group and has received an irrevocable undertaking from Herald Investment Management Limited, which has a 7.92 holding in Trace, to accept the new cash offer.

In morning trading Trace shares surged 14.52% to 177.50 pence on news of Microgen's revised offer.

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