Ramsdens Holdings Secures Enhanced 232 Million Pound FirstCash Takeover Offer

Shares in Ramsdens Holdings PLC advanced 13.6% to 670 pence following confirmation that US pawnbroking group FirstCash has increased its recommended takeover offer for the AIM-listed retailer. The revised proposal came after extensive consultation with Ramsdens shareholders, who had provided feedback on the initial bid terms.

FirstCash has raised its cash consideration to 675 pence per share from the previously announced 600 pence. When combined with dividends of up to 9 pence per share that shareholders will either receive or be compensated for, the total offer value reaches as much as 684 pence per share. On a fully diluted basis, the enhanced proposal values the pawnbroker, jewellery retailer and foreign exchange business at up to £232 million.

The improved cash offer represents a 49% premium to Ramsdens’ closing share price on 22 June, the day before the original bid was announced. It also reflects a 37% premium to the company’s record closing price prior to the commencement of the offer period.

Both parties confirmed they had undertaken engagement with Ramsdens shareholders following last month’s initial recommended offer, with the increased price agreed in direct response to those discussions. FirstCash has declared the revised proposal to be its final offer under Takeover Panel rules, which prevents any further bid increase unless a competing bidder emerges or the Panel grants permission under exceptional circumstances.

The transaction structure remains unchanged, proceeding as a scheme of arrangement. The Ramsdens board continues to provide its unanimous support for the takeover.