Advanced Energy Offers To Buy XP Power In GBP 571 Cash Deal

(RTTNews) - Advanced Energy Industries Inc (AEIS) announced Tuesday a possible offer of 19.50 pounds per share in cash to acquire XP Power Limited (XPP.L) following the rejection of previous three porposals.

The total proposed consideration of the latest proposal is 571 million pounds.

Advanced Energy said XP Power Board has rejected its previous three, all-cash, proposals. The company in October last year had offered 17 pounds per share in cash, valuing XP Power's equity at 339 million pounds, and in November offered 18.50 pounds per share in cash, valuing XP Power's equity at 369 million pounds.

On May 7, the company offered 19.50 pounds per share in cash, then valuing XP Power's equity at 468 million pounds, and reflecting the increased number of shares following XP Power's November 6, 2023 equity raise executed at 11.50 pounds per share.

The company noted that each of these proposals has been at a significant premium to the share price at the time of each respective proposal, but were unanimously rejected by the Board of XP Power.

The latest proposal at the price of 19.50 per share in cash represents a 68% premium to XP Power's closing share price of 11.64 as of May 20, being the last business day prior to this announcement.

Advanced Energy said the possible acquisition of XP Power is consistent with its growth strategy, but the company will remain price disciplined when considering any potential acquisitions, including the potential acquisition of XP Power.

Advanced Energy intends to fund the acquisition with cash available on its balance sheet.