Investment in Frontier Smart Technologies Group Limited
08 July, 2019
Science Group plc (AIM:SAG) welcomes the Frontier announcement issued on Friday 5 July regarding the clarification of the Frontier statement issued on 14 June 2019. Science Group concludes that:
- Science Group’s Offer is the only offer for Frontier – as announced on 1 July and posted to Frontier Shareholders on 2 July 2019;
- Contrary to previous indications by Frontier (14 June) regarding the alternative approach, it is now “unlikely that the discussions will result in an offer for” Frontier from this alternative source;
- Frontier’s discussions regarding a further alternative new proposal from the same party are at no more than a “concept” stage, after 3 weeks of “urgently seeking to clarify” this alternative approach. The basic transaction framework has not even been agreed and “there is no meaningful prospect of agreeing Heads of Terms, less still entering into a definitive legal agreement, prior to the closing date of the Science Group Offer of 16 July 2019”. This indicates that the “potential, but uncertain” discussions are preliminary and speculative; and
- Frontier’s operating performance and expectations for the current year remain unchanged following the significant downgrade it announced on 9 May 2019, which resulted in Frontier’s share price falling to a closing price of 13.4 pence.