London-listed XP Power shares slump as Advanced Energy ends potential takeover bid

Investing.com -- London-listed shares in XP (NASDAQ:XP) Power (LON:XPP) had shed more than 16% of their value in mid-morning trading on Tuesday after U.S.-based Advanced Energy Industries (NASDAQ:AEIS) announced that it had ended a potential takeover bid worth 468 million pounds.

Singapore-based XP Power, which supplies power control systems, noted the announcement, but added that it "has had no contact" from Advanced Energy since it rejected a prior proposal earlier this year.

Advanced Energy had approached XP Power with a possible conditional all-cash offer of 1,950 pence per share in May. It was the third such bid -- and the second sweetening of the deal -- the developer of precision power conversion equipment had presented to XP Power.

But Advanced Energy said a "lack of progress" around the value of the transaction had prevented it from "accessing due diligence necessary to make a firm offer." It flagged that, based off of publicly-available data, it had not identified "any additional elements that would justify" once again improving its offer.

"The decision [...] is consistent with Advanced Energy’s commitment to financial discipline by targeting acquisitions that would generate a required return above its cost of capital," Advanced Energy said.

Following the move, Advanced Energy will be blocked from unveiling any updated offer for XP Power for six months, the Colorado-based company said. Shares in the group rose in premarket U.S. trading on Tuesday.