TT Electronics confident of financial framework after Volex abandons takeover talks
By Iain Gilbert
Date: Friday 13 Dec 2024
(Sharecast News) - 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.
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
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