Kent-based messaging company Synchronica has settled on a better offer from Myriad.
Following intense negotiating, mobile messaging business Synchronica has agreed to an increased bid from Swiss rival Myriad.
The original offer was pitched at 4.67 new Myriad shares for 100 shares in AIM-listed Synchronica. However, this has now been upped to 4.83 new Myriad shares – which equates to 15p a share.
Those shareholders that have already accepted the original offer will now revert to the enhanced deal, but the current share price is marking time at 12.625p.
Following the recent acceptance by 9 per cent shareholder Fidelity, the total irrevocable undertakings to take up the offer (including four directors) is now 10.29 per cent. Synchronica had argued the initial approach from Myriad was ‘unacceptable’, which led to a very public, acrimonious battle.
However, the Synchronica board has since had a change of heart, largely due to a $5 million deferred payment owed to Nokia. With the Finnish phone giant having a charge over all its assets and subsidiaries, the fear was that any future equity fundraising may need to go straight to Nokia.
In addition, Myriad has lent $3 million to the cash strapped company to help towards payroll costs.
Simon Wilkinson, chief executive of Myriad, comments, ‘The combined businesses should be well-positioned to exploit the opportunities presented by the growing global demand for mobile data consumption and to deliver enhanced value for shareholders.’