Shares in John Swan, the livestock auctioneer with substantial Edinburgh land holdings, have almost doubled after the announcement of a possible bid.
The shares rocketed from 625p to 1275p after the board signalled a likely sale to H & H Group for 1350p, valuing the group at over £8m.
Carlisle-based H&H, which has a 140-year heritage, is a holding company for businesses operating across the rural, motor, commercial print, financial and property sectors.
Swan has land holdings west of Edinburgh on which the company booked a £1.5m uplift after revaluation in 2012-13. Its profits from auctioneering last year were entirely wiped out by a bad debt, leaving Swan with an unchanged loss of around £360,000.
Chairman Alastair Ritchie told shareholders on July 31 that the board had been active on the property front, against a background of growing recovery in land values.
The stock exchange announcement said the board had an approach from H&H Group "which may or may not lead to a cash offer with a partial share alternative being made to acquire the entire issued and to be issued ordinary share capital of John Swan".
It said the board's current intention was to recommend a formal, binding offer from H&H if made at the indicative price of 1350p, but went on: "There can be no certainty that an offer will be made for the Company or, if an offer is made, whether a partial share alternative is also made."
H & H now has until January 15 to confirm its intentions under the takeover code.
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