DX Group’s Share Price Rose on the Possibility of a Takeover Offer

The DX (Group) PLC (LON: DX) share price edged higher on news that H.I.G. European Capital Partners LLP had received new letters of intent from DX Group shareholders who intend to support its possible offer for DX Group after the initial letters of intent expired on October 31, 2023.

H.I.G. European Capital Partners LLP received the initial letters of intent on 12 September 2023 after declaring its intent to acquire DX Group on 11 September 2023. The company has until 6 November 2023 to declare a firm offer for DX Group or leave the deal. 

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The original letters of intent and the recently renewed one were from Gatemore Capital Management LLP and Lloyd Dunn. 

The recently issued Letter of Intent from Gatemore pertains to 101,503,538 ordinary shares of 1 pence each in DX (DX Shares) and 13,250,000 contracts for difference linked to these DX Shares (CFDs).

Gatemore holds discretionary fund management control over these DX Shares and CFDs. The DX Shares make up roughly 16.8% of DX’s issued share capital, and the CFDs represent about 2.2% of DX’s issued share capital as of October 31, 2023, the date before this announcement.

Similarly, the new Letter of Intent from Lloyd Dunn is associated with 76,361,454 DX Shares, constituting approximately 12.6% of DX’s issued share capital as of October 31, 2023, the date preceding this announcement.

The total number of DX Shares and CFDs, subject to the letters of intent received by H.I.G from holders of DX shares and CFDs, amounts to 191,114,992 DX Shares and CFDs. This represents approximately 31.6% of DX’s issued share capital as of October 31, 2023. 

The newly issued Letters of Intent confirm the intention of both Gatemore and Lloyd Dunn to provide hard, irrevocable undertakings in support of any cash offer for at least 48.5 pence per DX Share. This offer includes the 1 pence final dividend DX announced on October 3, 2023.

The above undertakings are contingent upon a unanimous and unqualified recommendation by the DX board on or before November 6, 2023.

DX Group share price. 

The DX Group share price edged higher on news of a possible takeover offer by H.I.G Capital LLC.