Volex has made a second offer of £258.6m to acquire electronic manufacturing firm, TT Electronics.

The performance-critical applications and power products manufacturer described its offer as a "highly attractive opportunity for TT Electronics shareholders".

It added that the deal represents an "immediate cash exit following the ingoing operational and end market challenges" faced by the firm, with the opportunity to share in the "upside of a highly attractive enlarged business".

The latest offer presents a premium of 76% on TT Electronics’ closing price on 14 November.

The news comes after TT Electronics stated that its second half revenue is expected to be between £15m-20m lower than previously expected, after reporting "weak" trading results in August.

Chief executive at Volex, Lord Rothschild, said: "We believe that bringing Volex and TT Electronics together in a highly synergistic transaction would create a scaled and diversified leader in the specialist electronics market which would act as a platform for future organic and inorganic growth and significant value creation.

"TT Electronics would provide the group with further exposure to structural growth markets, such as medical and industrial technology, and add a new end-market, aerospace and defence, to progress Volex's successful strategy of diversification."

He added that despite the "resilience" of TT’s underlying business, it has faced "persistent challenges in recent years”, which Volex believes has been “exacerbated by execution missteps by the board", including former and current executive leadership.

Rothschild stated that as a result, the firm’s shares a "trading at a 10-year low".

He concluded: "We firmly believe that our second proposal offers shareholders an extremely compelling alternative to the status-quo: the opportunity to in the near term to realise a meaningful element of the offer consideration in cash whilst operational challenges persist, and alongside our own shareholders, participate in the highly attractive upsides offered by the growth qualities and synergy potential of the combined business led by an experienced team that has a track record of successfully delivering value accretive acquisitions.

"I therefore strongly encourage TT Electronics shareholders to urge the TT Electronics board to engage with Volex in delivering an expeditious and highly attractive outcome for all stakeholders."

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