(Reuters) – Nestor Healthcare (NSR.L) said on Wednesday it rejected an unsolicited approach from a private-equity group that valued the British company about 101.6 million pounds, calling it too low.
Acromas Holdings, formed through the merger of vehicle breakdown services company AA with holiday and insurance firm Saga, offered 90 pence in cash for each Nestor share, a 12 percent premium to the healthcare staffing specialist’s Tuesday close.
“In the view of the board, (the preliminary offer) materially undervalued the company and was therefore rejected,” Nestor Healthcare said in a statement.
Shares in the company gained more than 9 percent to touch 88 pence, their peak in nearly three years, on the London Stock Exchange
Acromas is owned partly by its employees and by funds advised by private-equity firms Permira, CVC and Charterhouse Capital Partners.
Nestor shares were trading up 8 percent at 86 pence at 0951 GMT. (Reporting by Aditi Samajpati in Bangalore; Editing by Aradhana Aravindan)