HCL Tech makes counterbid for Axon

HCL Technologies announced on Friday that it was making a counter bid to acquire UK-based IT firm Axon Group. Under the terms of the offer, Axon shareholders would receive 650 pence in cash for each share, inclusive of the Interim Dividend. The offer price values the entire issued and to be issued share capital of Axon at approximately £441.1mn. The Infosys bid valued Axon at around £407mn. It may be recalled that earlier, HCL Tech had denied media reports of it making a counter offer for Axon.

The offer price represents a premium of 42.6% to the average closing price of 455.7 pence per Axon share for the three months ended August 22, being the last business day prior to the announcement of the offer by Infosys for Axon; 29.4% to the closing price of 502.5 pence per Axon share on August 22, being the last business day prior to the announcement of the offer by Infosys for Axon; and 8.3% to the Infosys offer of 600 pence per Axon share, inclusive of the Interim Dividend.