Connaught has posted its bid document for Fountains.
Connaught is offering 0.2377 of a share for each share in the vegetation management and forestry services business. Bid talks were first revealed on 5 November 2008.
Connaught shares are trading at 375p each. This values each Fountains share at just over 89p.
At a market price of 84.5p a share, Fountains is valued at £12.7m.
Connaught will expand its range of services in the environmental management sector. This is a consolidating market and Connaught will hold a strong position in the UK. The purchaser also expects to be able to take costs out of the Fountains business.
Connaught has the backing of shareholders owning 38.65% of Fountains, although at this stage they are mainly non-binding letters of intent.
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