XP Power rejects £468m takeover proposal from Advanced Energy

Advanced Energy said on Tuesday that it has made three possible all-cash offers for XP Power, the last of which valued the group at £468m.

The Colorado-based company made an initial offer at 1,700p per share, or £339m, in October 2023. In November of the same year, it offered 1,850p per share, or £369m. Its latest offer, at 1,950p per share, was made on 7 May.

"Each of these proposals has been at a significant premium to the share price at the time of each respective proposal, but the board of XP Power unanimously rejected each of these proposals," it said.

"Given the lack of engagement from the board of XP Power, Advanced Energy believes that XP Power's shareholders should be made aware of the latest proposal, which represents a compelling and highly attractive opportunity particularly in light of the November 6, 2023 fundraising and February 16, 2024 trading update.

"The possible acquisition of XP Power is consistent with Advanced Energy's growth strategy, but the company will remain price disciplined when considering any potential acquisitions, including the potential acquisition of XP Power."

The latest offer represents a 68% premium to XP Power's closing share price on Monday.

At 0825 BST, the shares were up 47% at 1,710p.