TP Group's (LON: TPG) share price has surged on Tuesday following confirmation that it has received an approach from Science Group regarding a possible offer for the company.
Technology and services firm TP Group was the first to respond to the speculation, releasing a statement saying that the approach is “preliminary in nature and there can be no certainty that any offer for TP Group will be made.”
Science Group said that it acquired 79.3 million TP shares on the 9th of August (yesterday) and that in recent months it has “repeatedly sought to engage with the board of TP Group with regard to exploring a strategic investment and more recently in relation to a potential combination of the two companies.”
The approaches have so far been rejected. However, science Group pointed to TP's recent announcements and results as evidence of the company's uncertainty and their confusion about why TP has rejected the approaches.
“The Board of Science Group considers that there are significant potential synergies with TP Group and that a combination or strategic investment could be attractive to the employees, customers and shareholders of both organisations,” stated Science Group.
The news has seen TP Group's shares rally 34.74% to 5.26p. Science Group shares are down 2.8% at 432p.
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