Volex's Lord Rothschild urges TT Electronics to accept offer

Volex's Lord Rothschild urged TT Electronics to accept a sweetened £215 million takeover offer from the FTSE 250 manufacturing group on Thursday.

Lord Rothschild, who is chairman of the electronics group, said that the latest offer is "fair and reasonable" and that TT shareholders should vote in favor of it at a meeting on 27 June.

Volex's offer values TT at £215m, or 290p per share, and represents a premium of 36% to TT's closing price on 16 May, the day before the offer was announced. Volex has already received irrevocable undertakings from investors representing 25.5% of TT's shares.

TT initially rejected the offer, saying that it undervalued the company. However, Volex has since sweetened the terms of the deal, increasing the cash component of the offer from 260p to 290p per share.

Lord Rothschild said that the latest offer is "fair and reasonable" and that TT shareholders should vote in favor of it at a meeting on 27 June.

"The board of TT Electronics has carefully considered the revised offer from Volex and believes that it is in the best interests of TT shareholders to accept it," he said.

"The offer provides TT shareholders with an attractive premium to the current share price and the opportunity to realise their investment in cash."

TT shares rose 4.5% to 285p in early trading on Thursday.