Stock exchange: Time approaching for Frenkel to put up or shut up
Talks between listed companies Frenkel Topping Group and NAHL Group about a reverse takeover of the latter have been extended by another four weeks.
Frenkel Topping initially had until tomorrow to announce whether it would make an offer for the business best known as the owner of National Accident Helpline, but has now been given until 18 November.
In a statement to the market entitled ‘PUSU extension’ (put up or shut up), NAHL said: “Discussions with Frenkel Topping regarding a possible offer for the company remain ongoing and the companies are currently engaged in a period of mutual due diligence.”
The Takeover Panel has consented to extending the deadline, which could yet be extended again.
NAHL added: “There can be no certainty that a formal offer will be made or as to the terms on which any such offer might be made.”
Frenkel Topping is best known for giving financial advice to seriously injured claimants with large awards. Unveiling the potential bid [1] last month, it said its target was Bush & Co, NAHL Group’s case manager and rehabilitation subsidiary that supports serious and catastrophic injury victims.
This could lead to the claims management business, associated law firm and conveyancing leads arm – which account for three-quarters of the group – being sold off.
Frenkel Topping has a 6% stake in NAHL and Harwood Capital – which owns 13% of NAHL – is supporting the deal.
NAHL’s shares initially surged by nearly 50% to 62p when news of the Frenkel offer emerged but have since fallen back to 53p.
NAHL revealed today that former chief executive Russell Atkinson, who unexpectedly resigned last month, sold 145,000 of his remaining 387,000 shares (amounting to 0.85% of issued shares in the company) at 53p, raising £77,000.
The share price has fallen steadily since a high of over 400p five years ago and crashed in February [2] to 56p after NAHL said uncertainty in the PI market would significantly affect its performance in 2020.
The day before the offer was announced, NAHL said it had faced “the most challenging six months [3]” in its history.