What now for XP Power?
Advanced Energy Industries has dropped its hostile bid for XP Power, and will be prevented from making a bid for the company for the next six months.
However investor BlackRock is loaning out stock, implying there are short positions that expect the share price to fall. This happens regularly after a failed takeover attempt.
The board of XP Power said that it has had no contact from Advanced Energy since the latest $571m bid was rejected on 13 May 2024.
“Advanced Energy has sought to engage with the XP Power board of directors, but the lack of any progress given relative expectations of value has prevented it from accessing due diligence necessary to make a firm offer,” it said.
“Based on publicly available information, Advanced Energy has not identified any additional elements that would justify improving the terms of its possible offer. Advanced Energy believes that the possible offer, at 1950p per share, captured the potential of future market recovery while factoring in near and intermediate term market and operational risks facing XP Power as a standalone company.”
The Singapore Takeover Code means Advanced Energy will be prevented from announcing an offer or possible offer for XP Power or taking certain other actions for a period of six months from today.
The XP board confirmed that its full year trading expectations remain unchanged and it will announce its Interim Results on 6 August 2024.
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