TT Electronics confident of financial framework after Volex abandons takeover talks
TT Electronics
107.00p
14:15 13/12/24
Electronic components manufacturer TT Electronics said it continues to have confidence in its medium-term financial framework after Volex backed out of a takeover pursuit of the electronic components group, following a month of speculation that it may make an offer.
Electronic & Electrical Equipment
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14:14 13/12/24
FTSE AIM 50
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14:15 13/12/24
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14:15 13/12/24
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Volex
296.50p
14:14 13/12/24
Ahead of Friday's put up or shut up deadline, Volex said it does not intend to make an offer. On 15 November, Volex made two proposals to TT's board regarding a possible cash-and-shares offer – the first at the equivalent price of 129.0p and the second at 139.6p, valuing the company at £249.0m – but both were rejected.
TT Electronics said late on Thursday that it expects to run at a 12% operating margin by 2026, which assumes a reasonable recovery in the components market and was underpinned by "good momentum" in its European and Asian businesses, alongside the impact of Project Dynamo.
The London-listed group added that guidance for the year ending 31 December was unchanged.
As of 0950 GMT, TT shares were down 2.48% at 105.32p.
Reporting by Iain Gilbert at Sharecast.com