TI Fluid Systems has rejected two acquisition offers from Canadian rival firm, ABC Technologies, with the latest valued at £870m.

The FTSE 250-listed car part supplier said that the offers from the Apollo-backed company undervalued the firm.

TI Fluid Systems, which specialises in fluid handling, operates in 27 countries.

It stated that it had received two bids, the latest on 4 September, which valued the firm at 176 pence a share, a premium of 20.7% on its closing price on 13 September.

However, TI Fluid Systems said its board had "unanimously concluded" that the offer "significantly undervalued" the firm and its prospects, leading it to reject the bid early last week.

Under takeover rules, ABC Technologies has until 12 October 2024 to either announce affirm intention to make an offer for TI Fluid Systems or announce that it does not intend to make an offer for the firm.

Investment director at AJ Bell, Russ Mould, said: "Another day, another bid approach for a down on its luck UK company. This time TI Fluid Systems is in the crosshairs with Canada’s ABC Technologies putting out the loaded statement it is ‘considering its position’ after having two initial bids rebuffed.

"TI Fluid Systems has struggled to make much headway since its 2017 IPO, not helped more recently by the uncertainty in the automotive market where regulation is pushing for a transition to electric vehicles but consumer demand isn’t keeping up.

"This makes it difficult for TI Fluid’s clients to make investment decisions, even if TI Fluid has worked hard to make itself ‘propulsion agnostic’ – i.e., it doesn’t matter if the demand comes from EVs or traditional petrol vehicles.

"Against this backdrop, shareholders may conclude they are best taking the money on the table from ABC, but this would mean a further thinning of the ranks of a UK market which has been picked apart in recent years by overseas predators."

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