Camera manufacturer Andor Technology, a spin-out of Queen’s University Belfast, has recommended that its shareholders accept a takeover bid of 525p per share from Oxford Instruments (OI).
OI, one of Oxford’s oldest and most successful spin-outs and the inventor behind superconducting magnets used in MRI scanners, made an offer of 500p per share public last month, but has been in discussions with Andor since July when it started with an offer at 420p per share.
The offer for the Alternative Investment Market-listed Andor will see the Belfast-based firm valued at £176m ($287.5m), and will be financed through a combination of cash and £160m of debt.
Andor executives Colin and Conor Walsh, as well as Donal Denvir, who collectively hold 4.25% of Andor shares, have committed to accepting the offer, as well as investors Polar Capital (3.89%) and Cazenove Capital (9.82%). Queen’s University Belfast is also reported to retain a stake in Andor, according to the British Broadcasting Corporation.
Commenting on the offer, Colin Walsh, chairman of Andor, said: “The Andor Board’s decision to recommend the Offer rested on two important factors. First, the offer recognises the important role which our highly capable and professional staff have played in building Andor into the unique entity we have today and creates a framework in which our staff can continue to thrive and grow the business under new ownership.
“Secondly, after several months spent carefully evaluating our strategic alternatives, the Board believes that the Offer represents the best possible means of maximising shareholder value in the short to medium term. We believe Andor is a “one of a kind” business and, like Oxford Instruments, is an outstanding example of how the very best in UK science can be successfully commercialised across global markets. We are confident that Andor will add tremendous value to the growth plan for the combined business.”
