Spice plc rejects 'opportunistic' takeover bid from private equity firm

Cinven said it offered 56p per share, a premium of 51.4 per cent on the share price before making its bid on May 24.

A statement added: "Cinven believes that the level of this indicative offer represented a significant premium for both the value of Spice's businesses and the recovery value from executing the strategic review being undertaken by Spice's management.

"This approach was rejected by the board of Spice and there are currently no discussions taking place between Cinven and Spice."

In a statement, Spice described the approach as opportunistic and said it "significantly undervalues" the business.

The Leeds-based company added: "Spice has recently appointed Martin Towers as chief executive on a permanent basis and has communicated a clear set of objectives to enhance value for shareholders in the short term.

"We've made excellent progress in executing these objectives, including the recent disposals of the telecoms and gas businesses, reducing the level of indebtedness and identifying specific restructuring and reorganisation actions to continue to drive cost out of the group.

"The strategic review in relation to the facilities business is ongoing.

"The outcome of this review is expected to result in the group's core operations being focused on markets which have strong underlying regulatory and environmental drivers.

"These actions leave the group well positioned for the new financial year and beyond.

"The board believes that the approach from Cinven is opportunistic and significantly undervalues the company.

"Spice is trading in line with the board's expectations, and our priority remains enhancing shareholder value.

"The board is confident that Spice can deliver significant value to shareholders over the medium term.

Spice, which provides services ranging from refurbishment of overhead power lines to pinpointing unbilled properties, said last month that trading was in line with expectations and pre-tax profits would be slightly better than last year.

Shares were up six per cent at 52.75p this morning.