Tungsten shares rise after board receives higher possible offer from Kofax

Tungsten Corporation announced an extension to the put-up-or-shut-up deadline on a possible takeover offer from California-based automation software company Kofax on Tuesday.

The AIM-traded firm announced on 14 December that it had received an unsolicited indicative proposal from Kofax, owned by private equity firm Thoma Bravo, relating to a possible cash offer for the company, at a price of 40p per share.

Under the Takeover Code, Kofax was required to either announce a firm intention to make an offer or confirm that it did not intend to make an offer by 1700 GMT on 22 February.

Tungsten Corporation said that on 18 February, it received a revised indicative proposal from Kofax relating to a possible cash offer, at a price of 42p per share.

It said the revised proposal was subject to a number of pre-conditions, including completion of final confirmatory due diligence and on receiving a board recommendation and irrevocable undertakings from all Tungsten directors.

“At this point, the board has not formed a view on whether they would recommend this revised proposal to shareholders, should a formal offer be forthcoming,” the Tungsten board said on Tuesday.

The company said discussions were ongoing and, in accordance with the Takeover Code, the it had requested, and the Takeover Panel had consented to, an extension to the deadline by which Kofax was required either to announce a firm intention to make an offer or to confirm that it did not intend to make an offer.

Such announcement must now be made by 1700 GMT on 8 March, although that could be extended by the board of Tungsten with the consent of the Takeover Panel.

“There can be no certainty that a firm offer will be made nor as to the terms of any such offer,” the directors added.

“A further announcement will be made in due course.”

At 1617 GMT, shares in Tungsten Corporation were up 7.8% at 36.33p.