SINGAPUR (dpa-AFX) - U.S.-based electrical equipment business Advanced Energy Industries, Inc. (AEIS) on Tuesday confirmed further to its announcement made on May 21 that it does not intend to make an offer for the shares of Singapore-headquartered XP Power Limited (XPP).
Advanced Energy stated that though it sought to engage with XP Power, it has not been able to access due diligence necessary to make a firm offer. Advanced Energy believes that the possible offer, at 19.50 pounds per share, captured the potential of future market recovery while factoring in near and intermediate term market and operational risks facing XP Power as a standalone company.
Based on publicly available information, improving the terms of its possible offer was not justified. The company said that the decision not to make a firm offer for XP Power was 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 it continues to review alternative investment opportunities within the broader precision power industry.
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