Iomart suitor ups takeover approach to £321m

Web hosting specialist Iomart has received a possible offer valuing the company at £321 million, less than a month after it rejected two previous approaches.

The Glasgow-based group said rival Host Europe, controlled by private equity firm Cinven, has made an indicative proposal regarding a possible offer at 300p a share.

The approach follows an announcement by Iomart on 24 July that it had rejected two possible cash offers from Cinven of 275p and 285p, arguing that the advances “undervalued” the company.

Under City takeover rules, Host Europe had until Thursday to make a firm offer or walk away, but this deadline has now been extended until 16 September “to enable Cinven to conduct initial due diligence and enable the parties to conclude their ongoing discussions”.

Iomart, led by co-founder and chief executive Angus MacSween, said: “There can be no certainty that any offer will be made nor, if an offer is made, as to the price or other terms on which any offer might be made.”