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Unbound Group saw its shares surge on Tuesday (28 March) after the clothing company announced a possible cash offer by WoolOvers Group, a knitwear company which targets the same demographic.
Under the terms of the offer, Unbound shareholders would receive a 10.5 pence in cash and 1 contingent value right per Unbound share. The terms of the offer represent a premium of approximately 162.5% to the Unbound closing share price on 27 March and it is still ahead of the current price of 8 pence.
The board of Unbound has shared that it would consider a firm offer made by WoolOvers Group but added that the contingent value would have to give Unbound shareholders the right to receive any net proceeds if the company’s ongoing business interruption insurance claim relating to the Covid-19 pandemic is successful.
The clothing company has also said that WoolOvers Group has until 25 April to make an offer but reinstates that even in the event that an offer is made, it is not certain it will be accepted.
