Science Group surprises Frontier Smart Technologies with sweetened offer

Frontier Smart said in a statement that this was the first it had heard of the improved offer.

"Today's announcement is the first time Science Group has declared to Frontier, publicly or otherwise, the intention to increase its offer price from 30p per share," it said.

Science Group said the sweetened off represents a "substantial" premium of 137.3% to the closing mid-market Frontier share price on 17 May, which was the last day before it announced its initial approach.

In addition, the company said it has instructed Panmure Gordon to buy up to 10 million Frontier shares in the market at the offer price.

But Frontier urged its shareholders to take no action.

"As noted in the announcement by the board of Frontier on 14 May 2019 the company has, subsequent to the initial approach from Science Group, received a further approach from a credible industry player with a view to executing a corporate transaction which may or may not involve an offer for the company.

"Discussions continue with this second party with a view to clarifying the proposed structure and pricing, conditionality and deliverability of the potential transaction, in line with the Frontier board's fiduciary duty to maximise value for shareholders."

Frontier added that there can be no certainty that the second approach will result in a formal offer, nor as to the terms of any such offer if made.

At 1115 BST, Frontier shares were up 12% at 36.40p and Science Group shares were down 0.3% at 198.50p.