Journey Group, a provider of in-flight products and catering services to airliners, agreed to be taken private by Jaguar Holdings.
Shares in Journey Group finished the session higher by 16.26% to 236p. Its shareholders will receive 240p in cash for every scheme share held, valuing the entire firm at approximately £28.4m.
The 240p cash consideration represents a premium of about 18.23% with respect to the stock's closing price on Monday and of 30.16% when compared to the average volume weighted price over the 12 months ended 22 August.
Journey Group said it unanimously agreed to the takeover from Jaguar Holdings as it considered the terms of the offer to be fair and reasonable.
Jaguar Holdings was formed by private investor Harwood Capital on behalf of Harwood Funds. Following the takeover Jaguar Holdings will be owned by Harwood Funds.
Harwood Funds beneficially owned about 3.5m shares
in Journey Group already, which represents about 29.94% of Journey Group's existing issued share capital. Harwood Capital for its part either advised, controlled or had irrevocable undertakings over, in aggregate, about 4.8m shares in Journey Group, representing about 41.14% of its existing issued share capital.
Journey Group executive chairman Stephen Yapp, said: "The offer provides all Journey shareholders with the opportunity of a cash exit at a meaningful premium to the prevailing share price and recognises the company's underlying value, whilst also providing those shareholders, who so elect, with an opportunity to retain an interest in the business going forward.
"Whilst the business has fared well in the public markets, Journey will be better placed to deliver the next phase of its strategic objectives and to grow its US in-flight catering business as a private company."
Jaguar Holdings director Christopher Mills, said: "We believe that Journey, with its innovative in-flight catering service offering, has great potential but that, given the company's size, operating environment and significant US focus, it would fare better as a private company with a more cost effective corporate structure. Our offer provides Journey shareholders with a sizeable premium over the value of their shares as well as affording them the ability to elect to retain an interest in the business should they wish to do so."