The Trufin PLC (LON: TRU) share price rose 12.3% after announcing that it had rejected a takeover offer for its Oxygen Finance Limited (Oxygen) subsidiary.
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The company revealed that it had received a non-binding, indicative offer for Oxygen Finance, valuing it at £26 million.
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However, the TruFin board rejected the offer since it believes that the price offered undervalues the business and prospects of Oxygen.
Investors reacted positively to the announcement showing their approval of the board’s decision to reject the offer.
The Trufin board was right in rejecting the offer, given Oxygen Finance recently surpassed £1 billion in free early payments to small and micro businesses via its ground-breaking FreePay scheme, with over £415 million of the £1 billion being processed in the first ten months of 2022.
Luckily for Trufin, the company operates other businesses that could be perfect acquisition targets for specific acquirers. However, the company has demonstrated that it will not accept lowball offers; hence, its businesses will likely attract better offers.
Trufin shares are down 15.53% for the year and could rally higher in the new year if its portfolio companies continue performing well.
*This is not investment advice.
Trufin share price.
Trufin shares rose 12.3% to trade at 70.75p, rising from Wednesday’s closing price of 63.00p.
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