Talks over a potential takeover of claims management company National Accident Helpline will stretch into a third month, the parties have revealed.
NAHL announced to the London Stock Exchange in September that it had received a preliminary approach from the Frenkel Topping group to buy the business in full.
A further announcement this week stated that discussions regarding a possible offer ‘remain ongoing’ and that the companies are continuing mutual due diligence.
To allow further time for talks, the parties have requested an extension of the date by which Frenkel Topping must either announce a firm intention to make an offer or give notice that an offer is not coming.
A further announcement must not be made no later than 5pm on 16 December, although there is scope to push the deadline back further if the NAHL board requests it.
The statement notes there ‘can be no certainty’ that a formal offer will be made.
Frenkel Topping provides financial and wealth management advice focusing on asset protection for clients who have suffered serious injuries. It is also a listed company, having gone public in 2005. The company said in September there was a ‘clear strategic, operational and financial rationale to combining these two complementary businesses that focus on providing excellent professional support to the victims of life changing injury, incident or clinical negligence’.
This has been a rocky year for NAHL, with the resignation of chief executive Russell Atkinson ahead of half-year showing profit before tax down 61% to £1.8m.
Chair Caroline Brown described the first half of 2020 as the ‘most challenging in NAJHL’s history’ and the company moved to restructure its business to make £1m annual cost savings.
NAHL shares have risen 10.5% since Wednesday’s announcement; Frenkel Topping's are unchanged.