Shares in TT Electronics have fallen sharply today after DBAY Advisors confirmed it does not intend to make an offer for the company to compete with the £287 million takeover already agreed with Cicor.
The news has wiped more than 13% off the AIM-listed group’s share price.
DBAY said on 9th December that it was considering a possible offer for all the shares in TT Electronics – excluding those already owned by funds managed or advised by DBAY – as it opposes the deal agreed with Cicor.
However the next day, the Panel on Takeovers and Mergers intervened, ruling that DBAY must, by 5pm today, either announce a firm intention to make an offer for electronic components manufacturer TT under Rule 2.7 of the Takeover Code – or confirm that it did not intend to proceed.
DBAY accepted the ruling and, by the clarification deadline, confirmed it “does not intend to make an offer for TT Electronics”.
The confirmation effectively removed takeover speculation that had been supporting the share price, prompting a swift negative market reaction.
Investors appeared to reassess the firm’s valuation in the absence of a potential bid premium, leading to the double-digit percentage decline in early trading today.
Under Rule 2.8 of the Takeover Code, DBAY and any person acting in concert with it are now bound by restrictions that prevent it from making an offer for TT Electronics, unless the Panel gives its consent.
However, DBAY noted that it reserves the right to set those restrictions aside in certain circumstances.
These include if Cicor’s £287m offer for TT Electronics is withdrawn or lapses with the agreement of the TT board, if a third party announces a firm intention to make an offer, if TT Electronics announces a Rule 9 waiver or a reverse takeover, or if the Panel determines there has been a material change of circumstances.
Despite stepping back from a bid, DBAY reiterated its opposition to Cicor’s proposed acquisition of TT Electronics.
The company said it continues to believe that the terms of Cicor’s offer are unattractive and confirmed that it intends to vote against the scheme of arrangement.
The news comes just weeks after TT reported flat results in its latest accounts.
For the four-month period ended 25th October 2025, it said revenue was £150.4m.
The board reconfirmed its previous guidance for full year 2025, which was for adjusted operating profit expected to be in line with the then-consensus of £33.7m.
So far today, its share price has dropped to 115p, while its market cap sits at just over £236m.