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Frontier Smart Technologies Group

Frontier Smart hopes to convince Science Group of the merits of alternative to a takeover

Frontier's management thinks the rival potential offer from a "credible industry player" might be better than Science Group's takeover offer but it is running out of time

Internet of Things
The company formerly known as Toumaz has another iron in the fire

Takeover target Frontier Smart Technologies Group Ltd (LON:FST) is looking to reopen discussions with Science Group PLC (LON:FST).

For now, the company is advising shareholders to take no action in respect of Science Group’s 35p a share offer, even though the prospect of a better offer that the Frontier board dangled before its shareholders now appears to be more of a joint venture proposal than a full takeover.

READ Science Group ups offer for Frontier Smart, which says it might have a better offer

Furthermore, the digital radio and internet-of-things technology specialist admitted there is next to no prospect of the talks with what it called “a credible industry player” yielding a heads of terms agreement by 16 July, the closing date of the Science Group offer.

The exact structure and ownership of the joint venture, including the assets to be transferred into it, remains subject to negotiation; as does the implied valuation and capitalisation of the joint venture, Frontier Smart said.

In the opinion of the Frontier board, if negotiations with the credible industry player were to be successfully concluded, the deal would likely present the prospect of material incremental potential value for Frontier, its shareholders (which include Science Group) and other stakeholders.

Frontier said it wants to open collaborative discussions with Science Group and its advisers with a view to agreeing on a route forward which preserves the potential value upside for all current Frontier shareholders.

Shares in Frontier nudged up 1.1% to 35.9p in early deals.

Quick facts: Frontier Smart Technologies Group

Price: 25.5 GBX

Market: AIM
Market Cap: £11.45 m
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