TT Electronics PLC on Thursday backed its medium-term outlook, after Volex PLC ruled out making an offer for the manufacturer of electronic components.

Woking, Surrey-based TT Electronics ‘continues to have confidence’ in its medium-term financial outlook, it said, including its aim of a 12% operating margin by 2026.

It said its outlook for 2024 is unchanged.

Volex on Thursday said it won’t make a takeover offer, saying the TT board wants too high of a price.

Volex Executive Chair Nat Rothschild said: ‘Volex remains resolutely disciplined in how it allocates capital and, applying that principle, we will not proceed with an offer for TT Electronics as it is now clear that the board of TT Electronics is not willing to recommend an offer at a valuation that is also acceptable to Volex.

‘Volex remains confident in its ability to meet full year expectations and remains focussed on delivering its five-year plan.’

Back in November, TT Electronics, which manufactures electronic components, rejected a takeover bid by Volex, a Basingstoke, Hampshire-based specialist integrated manufacturer of critical power and data transmission products.

TT Electronics had rejected the unsolicited approach as ‘fundamentally undervaluing TT Electronics and its long-term prospects’.

Volex shares rose 8.2% to 310.04 pence each in London on Thursday, giving it a market capitalisation of £564.0 million. TT Electronics shares slumped 8.4% to 108.50p. It has a market value of £193.0 million.

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