(Alliance News) - Unbound Group PLC shares surged on Tuesday, after it said it is in discussions with clothing company WoolOvers Group about a potential takeover offer at 10.5 pence per share, plus one contingent value right per Unbound share.

Unbound said it would be minded to accept an offer on such terms, which represents a hefty premium to Monday's closing price of 4p, if a firm offer is made in due course.

Shares in the footwear retailer were up 95% to 7.81 pence each in London on Tuesday afternoon.

"The contingent value right would give Unbound shareholders the right to receive any net proceeds if Unbound's ongoing business interruption insurance claim relating to the Covid-19 pandemic lockdowns is successful," Unbound explained.

The company emphasised that there can be no certainty that any offer will be ultimately made.

It added that WoolOvers must announce a firm intention to make an offer, or say that it does not intend to make an offer for Unbound, by no later than April 25. This deadline will only be extended with the consent of the Takeover Panel.

By Sophie Rose, Alliance News reporter

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