They also said DBAY’s support and private capital will enable Alliance to return to its acquisition strategy ‘more quickly than if it remained on the public market’.
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Camillo Pane, non-executive chairman of Alliance, said: ‘The offer from DBAY represents an attractive and certain value in cash today for our shareholders.’
Its proposed takeover comes amidst a frenzy of overseas companies taking advantage of depressed valuations to buy London-listed firms on the cheap.
The proposal is also more than double the 29.4p closing price recorded in May 2024 when Alliance announced the departure of its chief executive and a third delay to the publication of its 2023 results in five weeks.
She added that Alliance’s new owners will provide ‘operational expertise and significant additional capital to accelerate its strategy to grow through increased investment in new product innovation and development, M&A and expansion into new markets’.
Headquartered in Chippenham, Wiltshire, Alliance enjoyed see-through revenue of £183million last year, as well as underlying earnings before nasties of £45million.
Alliance’s new boss, Nick Sedgwick, has since been conducting a review to update the company’s strategy and formulating a plan to boost its long-term organic growth.
The AIM-listed group blames this on high debts, operational challenges, a ‘restrictive funding environment’, and a declining share price.
British businesses worth £145billion were snapped up in 2024, a 51 per cent rise on the previous year, according to the London Stock Exchange Group.
It added that the firm ‘needs time away from the public market’ and extra financing sources in order to fulfil its growth potential.
Directors at the business said the new plan had multiple uncertainties and would take ‘significant time and investment’ to achieve its potential benefits.
DBAY believes the cost of Alliance’s public listing hurts its ability to prioritise long-term growth and did not provide ‘significant benefits’ for the company given its current liquidity levels.
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