The board of CyanConnode has welcomed a £37.5 million takeover approach.
The Cambridge company, an IoT communication and smart metering solutions provider, is anticipating the all-cash offer from Dubai-based Esyasoft Holding Ltd.
The potential offer of 10.44 pence per share represents a 44% premium to CyanConnode’s middle-market closing price of 7.25p on 2nd February, the last business day prior to the offer period when Esyasoft’s interest in a potential £35m bid was reported.
Shares in the company are up 27% in the year to date having jumped 10% in the first 10 minutes of trading this morning (writing at 8.15am) to 9p.
“In considering the possible offer, the board has been particularly mindful of CyanConnode’s robust and longstanding strategic relationship with Esyasoft and its affiliated group companies,” read a notice to the London Stock Exchange.
“The board believes that combining the businesses would lead to significant commercial and strategic synergies, particularly in relation to scale, capital support and international expansion opportunities, across both India and other countries. In addition, approximately a quarter of CyanConnode’s group revenue has come from the Esyasoft Group in FY24 and FY25 combined.”
Should a concrete bid materialise, it will unanimously recommend it to its shareholders.
Last year former non-executive director Björn Lindblom took on the role of non-executive chairman, whilst executive chairman John Cronin stepped up to group CEO.
That news followed a £70m contract award to deploy around 750,000 smart meters.