(Sharecast News) – Smoove’s merger discussions with PEXA Group were looking positive on Friday, as the company announced an extension to the regulatory deadline.
The AIM-traded firm announced on 24 April that it was preliminary dialogue with PEXA Group over a potential all-cash acquisition of Smoove’s complete issued and pending share capital.
On Friday, it reported that the discussions with PEXA had been progressing constructively, and that both companies were deep into the formal due diligence procedure.
The advanced stage of discussion had prompted the board to seek an extension for the due diligence process.
It said the Takeover Panel had granted the request, and under the updated timeline, PEXA Group now had until 1700 BST on 8 September to either confirm its intention to buy Smoove, or to publicly declare its decision against the purchase.
“There can be no certainty either that an offer will be made nor as to the terms of any offer, if made,” the Smoove board cautioned in its statement.
“A further announcement will be made as and when appropriate,” it added, noting that the company remained in an ‘offer period’.
At 1333 BST, shares in Smoove were up 1.05% at 48p.
Reporting by Josh White for Sharecast.com.