Innovaderma higher as Creightons reveals preliminary bid approach to Skinny Tan maker’s board “unequ
Innovaderma PLC (LON:IDP) shares rose on Tuesday after Creightons PLC (LON:CRL) revealed that it had made a preliminary approach on January 26. 2021 to the group’s board of regarding a possible offer for the Skinny Tan maker.
The manufacturers of personal care, beauty, and fragrance products said the bid approach was “unequivocally rejected by the Innovaderma Board on 29 January 2021 without affording Creightons the benefit of any further discussion.”
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In s statement, the group added: “The Board of Creightons continues to have a serious interest in the possibility of a combination of the two businesses, and is therefore publishing today, in the Appendix to this announcement, the text of its letter to the Board of Innovaderma in order that the shareholders of Innovaderma are directly aware of Creightons’ interest.”
The letter states that “the Company’s current thinking is that a ratio of 2 Creightons ordinary shares for every 3 Innovaderma ordinary shares would be an appropriate basis”.
Based upon the mid-market price per Creightons ordinary share as at the close of business on February 1, 2021, of 66p, this would represent a value of 44p per Innovaderma ordinary share and a premium of 3.5% over the mid-market price per Innovaderma ordinary share of 42.5p at the close of business on that date.
Based upon the current issued share capital of Innovaderma (17,393,633 ordinary shares), the number of Creightons ordinary shares so issued would represent approximately 15% of Creightons’ enlarged issued share capital, it added
Creightons said its announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the Takeover Code and there is no certainty that any firm offer will be made.
It added that a further statement will be made as appropriate.
Innovaderma, which has yet to make a response to Creighton’s announcement, saw its shares jump 14% higher to 48.50p in morning trade on Tuesday. Creightons’ shares were 2.3% lower at 64.50p.
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