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Xchanging, Capita agree on terms of 412 million pound cash offer

Published 14/10/2015, 08:10
Updated 14/10/2015, 08:19
© Reuters.  Xchanging, Capita agree on terms of 412 million pound cash offer

(Reuters) - Outsourcing companies Xchanging Plc (L:XCH) and Capita Plc (L:CPI) said they had reached an agreement on terms of a recommended cash offer of 160 pence per share, valuing Xchanging at 412 million pounds.

The offer represents a discount of 2.4 percent to Xchanging stock's closing price on Tuesday. Capita's first proposal in August was 140 pence per share.

Capita and Xchanging said in a joint statement that the offer was final unless there was a firm intention by a third party to make an offer.

Talks were ongoing with U.S.-based private equity firm Apollo Global Management LLC (N:APO) for a potential offer at 170 pence per share in cash, Xchanging said separately.

Xchanging, which offers services ranging from back-office invoice processing to insurance claims settlement, said last week that it had received competing takeover offers from Capita and Apollo Global.

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