CyanConnode (LSE:CYAN) has received a revised indicative takeover approach from Esyasoft, proposing an all-cash offer that values the company at approximately £37.5 million, or 10.44 pence per share. The proposal represents a premium of up to 67% compared with recent trading reference points.
The board, advised by Strand Hanson, stated that it would unanimously recommend the offer to shareholders should Esyasoft proceed with a firm bid on the outlined financial terms and subject to agreement on other key conditions. The acquisition would be implemented through a scheme of arrangement, although there is no assurance at this stage that a binding offer will ultimately be made.
Directors highlighted the potential strategic rationale for combining the two businesses, citing opportunities for operational scale, enhanced capital backing and broader international growth. Roughly one quarter of CyanConnode’s recent revenue has been generated through the Esyasoft group, underscoring the depth of their commercial ties. Esyasoft has also previously provided US$20.25 million in convertible loan notes to help fund CyanConnode’s Goa smart metering project. Those instruments, however, are excluded from the proposed equity valuation. The approach remains subject to due diligence and other requirements under the UK Takeover Code.
From a financial standpoint, CyanConnode continues to face headwinds, including declining revenues, ongoing losses and negative operating cash flow. Valuation metrics remain constrained by negative earnings. Technical indicators offer some support, with the shares trading above key moving averages and showing positive MACD momentum, though elevated RSI and stochastic readings suggest the stock may be overbought, increasing near-term downside risk.
More about CyanConnode Holdings
CyanConnode Holdings is a UK-listed technology group focused on smart metering and narrowband radio frequency communications solutions. The company maintains a long-standing strategic relationship with Esyasoft and its affiliates, particularly in large-scale smart metering deployments in India and other global markets, where Esyasoft plays an important commercial and financial partner role.
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