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(Sharecast News) - AIM-listed smart metering specialist CyanConnode said on Tuesday that it has requested and been granted an extension to the 'put up or shut up' deadline after receiving a revised takeover approach from Esyasoft that it would be minded to recommend.
CyanConnode first announced last month that it had received an indicative non-binding takeover approach from Esyasoft valuing the group at 35m, or 9.75p a share.
Earlier on Tuesday, it said the smart grid technology firm had increased the proposed offer to 10.44p a share, valuing the company at 37.5m.
Having considered the renewed proposal with its financial adviser, CyanConnode said it was now at a level the board of directors would be willing to recommend unanimously to shareholders, should a firm intention to make an offer be announced.
"In considering the possible offer, the board has been particularly mindful of CyanConnode's robust and longstanding strategic relationship with Esyasoft and its affiliated group companies and the board believes that combining the businesses would lead to significant commercial and strategic synergies, particularly in relation to scale, capital support and international expansion opportunities, across both India and other countries," it said.
It noted that about a quarter of CyanConnode's group revenue has come from the Esyasoft Group in FY24 and FY25 combined.
"Esyasoft has begun a period of confirmatory due diligence and, with the support of CyanConnode, that process is progressing," the company said.
As a result, CyanConnode requested that the Takeover Panel extend the so-called put up or shut up deadline and Esyasoft now has until 1700 GMT on 31 March to either announce a firm offer or walk away.
At 1530 GMT, the shares were up 8.8% at 8.92p.
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