TI Fluid's Board Rejects ABC Technologies' Revised Offer: A Closer Look

TI Fluid Systems, a London-listed automotive components supplier, has once again rejected a buyout proposal from Canada's ABC Technologies Holdings Inc. On September 4, ABC Technologies submitted a revised offer of 176 pence (US$2.31, or RM9.94) per share, following an initial proposal of 165 pence per share on August 22. Despite the increase, TI Fluid's board deemed the revised offer as significantly undervaluing the company and its prospects.

TI Fluid's strategic plans and growth prospects play a pivotal role in the board's decision to reject the offer. The company recently raised its full-year adjusted operating profit margin expectation to over 7.6%, from 7.4% previously. This increase in profit margin expectation reflects TI Fluid's confidence in its growth prospects and the value it sees in its strategic plans.


The board's rejection of ABC Technologies' offer impacts the latter's potential acquisition strategy and future prospects. ABC Technologies may need to reassess its valuation of TI Fluid and consider alternative acquisition targets or strategies. The ongoing negotiations between the two companies are subject to the extended Rule 2.6 deadline, which may allow for further discussions and potential revisions to the offer.

TI Fluid's raised profit margin expectation influences the perceived value of the company compared to ABC Technologies' proposed buyout price. The increased profit margin expectation suggests that TI Fluid's intrinsic value may be higher than the offered price, further justifying the board's rejection of the offer.


The potential reasons behind TI Fluid's increased profit margin expectation include operational improvements, cost-cutting measures, and market growth opportunities. These factors may contribute to the company's long-term valuation and make it an attractive acquisition target for other potential suitors. As the negotiations between ABC Technologies and TI Fluid continue, the market will closely monitor the developments and their impact on both companies' future prospects.