Nasdaq ups bid for Cinnober to $220 million
The US-based exchanges operator has significantly increased its bid for the Swedish trading technology company, with its shareholders mulling the offer over the Christmas holidays.
The US-based exchanges operator announced it has increased its offer to Cinnober shareholder to SEK 87 a share and SEK 121 per warrant on Monday, up from SEK 75 per share and SEK 85 per warrant that Nasdaq offered back in September.
Cinnober shareholders mull Nasdaq offer
The Swedish tech company’s shareholders have until 9 January 2019 to accept the offer, with more than 82% already accepting the amended bid, Nasdaq said in a statement.
For the bid to be accepted Nasdaq requires 90% of Cinnober’s shareholders to take up the offer.
Shareholders who have already tendered their shares will automatically benefit from the increased consideration in the Revised Offer without any further action, Nasdaq said.
Nasdaq on the money
Cinnober is a supplier of clearing technology to major exchanges around the world, including Brazil-based B3 and the London Metal Exchange. But despite its strong market presence the company has seen profits dwindle over the last 18 months.
Thankfully, the company brought on a new CEO in the form of Peter Lenardos, who implemented a several cost-cutting measures that helped improve profitability at the company and precipitated in Nasdaq upping their offer for Cinnober.
Nasdaq’s initial offer struggled to gain shareholder support, with only 37% taking accepting it, with many believing the bid significantly undervalued the company.
In a statement, Cinnober’s board of directors unanimously recommended that shareholders accept the revised offer.
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