UK car parts firm TI Fluid Systems rejects foreign takeover approaches
London-listed TI Fluid Systems has received two takeover proposals from Canadian rival ABC Technologies.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.UK car parts supplier TI Fluid Systems has rebuffed a second takeover approach from a Canadian rival worth more than £870 million.
London-listed TI Fluid confirmed it received a further unsolicited cash proposal from ABC Technologies, which is backed by US private equity giant Apollo Global Management, for 176p a share on September 4.
ABC had earlier put forward an approach worth 165p a share.
Shares in Oxford-headquartered TI Fluid surged 13% higher in Monday morning trading on news of the latest approach.
But TI Fluid said its board had “unanimously” decided to reject the proposals.
“The board of TI Fluid Systems considered the proposal in detail with its advisers and unanimously concluded that it significantly undervalued TI Fluid Systems and its prospects, and accordingly the proposal was rejected early last week,” the firm said.
ABC Technologies, which is a Canadian distributor of components to the global car market, said it was leaving the door open to possible further advances.
It said: “ABC Technologies remains interested in a possible transaction and is therefore considering its position.”
ABC has until October 12 to announce a firm intention to make an offer or walk away under UK takeover rules.
If ABC succeeds, it would mark the latest blow to the London market after a string of foreign takeovers of UK firms.
Apollo has been particularly active on this front, recently taking over British parcel delivery company Evri for £2.7 billion.
Wagamama owner The Restaurant Group was also bought by Apollo last year, while earlier this year US private equity group Thoma Bravo struck an almost £4.3 billion deal to take UK cybersecurity firm Darktrace private.
TI Fluid Systems operates from 98 manufacturing locations across 27 countries worldwide and specialises in the production of fluid handling and thermal management systems.
It was founded in 1922, starting life as Harry Bundy and Company.