Eckoh PLC on Thursday said it has received tentative takeover offer from an unnamed private equity investor, as part of the sale process that it launched back in March.
The proposed price of 54 pence per share doesn’t represent a large premium to Eckoh’s current share price; however the stock is up 39% since March. Eckoh shares were up 2.6% to 49.77p early Thursday in London, giving the company a market capitalisation of £144.6 million. They had closed on Wednesday at 48.52p.
Eckoh is a London-based provider of secure payment and customer contact products.
It said the offer from the private equity investor, which it didn’t name, was ‘highly conditional’, ‘non-binding’, and ‘indicative’. Eckoh is now in an offer period, but there is no certainty a formal offer will be made, it said.
The offer following a period of discussions and negotiations with multiple parties, and Eckoh noted that talks with other parties continue.
Eckoh explained: ‘Late last year and based on the board’s belief that the share price did not reflect the fundamental value of the business, the company began to consider alternative options to realise value for shareholders. Subsequently, the board appointed [brokers] Stifel and Singer Capital Markets in March 2024 as financial advisers in order to determine the value that could be achieved in the event of a sale process and to initiate discussions on behalf of Eckoh.’
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