TT Electronics shares surge after Volex Group makes £248.6m takeover offer

'Despite the resilience of TT Electronics’ underlying business, it has faced persistent challenges successful caller years'

Lord Nat Rothschild’s Volex radical has made a £250m bid to get TT Electronics, criticising the company's enactment for "missteps".

The quality sent shares successful the Woking-based TT Electronics up by implicit a third. Specialising successful powerfulness products indispensable for devices ranging from infirmary ventilators to electrical cars and laptops, Volex has enactment guardant 2 takeover attempts.

Their latest connection values TT Electronics astatine £248.6m, oregon 139.6p per share, which is much than 3 quarters supra Thursday's closing price.

However, TT Electronics' committee has rejected each of its proposals, said Volex. TT Electronics, known for engineering and manufacturing electronics important for industries including healthcare and aerospace, boasts clients similar BAE Systems and Thales, with operations spanning the UK, North America, and Asia.

Lord Nat Rothschild, the enforcement president of Volex, said combining the 2 companies would make a beardown person successful the specializer electronics market. The salient businessman is simply a subordinate of the well-known Rothschild banking dynasty and lad of financier, Lord Jacob Rothschild, who died successful February.

He said: "Despite the resilience of TT Electronics’ underlying business, it has faced persistent challenges successful caller years, which Volex believes person been exacerbated by execution missteps by the board, including erstwhile and existent enforcement leadership. As a effect TT Electronics’ shares are trading astatine a 10-year low."

The stock terms of TT Electronics was astir 109p per stock connected Friday, marking the lowest since astir 2014. The manufacturer's acquisition strategy was besides criticised for starring to "very disappointing outcomes", and it was noted that the steadfast had "delivered a bid of inconsistent yearly results".

In September, TT Electronics alerted investors astir accumulation issues astatine its US factories which are expected to interaction yearly income and profits. It revealed that a bid of orders successful its American components concern had been deferred to 2025, alternatively of 2024 delivery, which would impact net wrong its North American division.

However, it sought to reassure investors that it was taking measures to rectify the operational issues, including enhancing the layout and readying of its factories. Lord Rothschild described its 2nd connection arsenic an "extremely compelling alternate to the presumption quo" and encouraged the company’s committee to prosecute with Volex.