Aim adviser Blue Oar has secured irrevocable undertakings to accept a potential bid from two shareholders owning a total of 16.9% of Dowgate Capital.
Dowgate’s largest shareholder Dru Edmonstone has undertaking to accept a bid for his 11.2% stake and Clive Mattock has agreed to accept it with his 5.6% stake.
Edmonstone left Dowgate last year so this is not a surprise. However, Mattock is still chairman of Dowgate Capital Stockbrokers according to the Dowgate website, although he is not on the holding company board.
Added to its 10.9% stake this gives Blue Oar the backing of 27.8% of the share capital.
The undertakings have been given to accept either an offer of 6p a share in cash or a recommended bid of 60p in cash plus three Blue Oar shares for every 10 Dowgate shares. The latter values each Dowgate share at 7.2p each.
The undertakings cease to be binding if no offer is made by 16 July 2009. Even if a higher bid is made by anyone else they remain binding.
Dowgate’s board says that a bid valued at 6p a share “is opportunistic and undervalues Dowgate”.
Shares in Dowgate improved 0.5p to 5.5p a share, valuing the company at £2.17m. At 4p a share, Blue Oar is valued £6.72m.
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