Business
Investment in Frontier Smart Technologies GroupLtd
Investment in Frontier Smart Technologies GroupLtd.
About this update from Science Group Plc
RNS Number : 4826Z Science Group PLC 20 May 2019 20 May 2019 Science Group plc ("Science Group") Investment in Frontier Smart Technologies Group Limited ("Frontier") Science Group has acquired a shareholding in Frontier of 3,685,054 ordinary shares representing approximately 9.0% of the issued share capital of Frontier. The average price of the shares acquired was 12.50 pence per share and the aggregate cost was approximately £460,691. The shares were purchased in the market between 9 May 2019 and 17 May 2019. Background Frontier is a pioneer in technologies for Digital Radio and Smart IoT Devices. Science Group is an international consultancy providing product development, applied science, technology advisory and regulatory services to a diverse client base. In recent months, Science Group and Frontier have held discussions with regard to potential cooperation, which have included the possibility of Science Group making an offer for the entire issued and to be issued share capital of Frontier at an attractive premium to the Frontier share price at close of business on 17 May 2019. The acquisition of the Frontier shareholding is consistent with the strategy set out in Science Group's strategic review undertaken in the second half of 2018 and announced on 24 January 2019. At 30 April 2019, Science Group held gross cash balances in excess of £26 million. Science Group Proposal On 8 May 2019, Science Group submitted a proposal ("Proposal") to the board of directors of Frontier (the "Frontier Board"), regarding a potential offer. The Proposal was in cash at an attractive premium to the closing share price on Friday 17 May 2019. Following the trading update issued by Frontier on 9 May 2019, a further letter, reaffirming and updating the Proposal in light of the trading update, was submitted by Science Group on 10 May 2019. The Frontier Board provided a response to Science Group on 16 May 2019. Subsequent correspondence from Science Group and from Science Group's legal advisers, Allen & Overy, has not received meaningful responses and, after nearly two weeks, there has been minimal tangible progress on any detailed aspect of the Proposal. Subsequent to receipt of the Proposal, the Frontier Board has sought to selectively apply the principles of the Code, to which Front...