Glasgow-based global intellectual property law firm Murgitroyd Group confirmed on Tuesday it is in “advanced discussions” over an “indicative proposal” from Sovereign Capital Partners LLP to acquire Murgitroyd for 675p per share in cash — about £60 million.

Murgitroyd shares have risen from around 496p a month ago to Monday’s closing price of 675p.

Sovereign Capital Partners LLP is a London-based private equity firm.

“The board of Murgitroyd notes the recent movement in the company’s share price and confirms that it is in advanced discussions in relation to an indicative proposal received from Sovereign Capital Partners LLP to acquire the entire issued and to be issued share capital of Murgitroyd at a price of 675 pence in cash,” said Murgitroyd in a stock exchange statement.

“The proposal assumes that the recently announced final dividend of 15 pence per share will be paid to shareholders on the register as at close of business on 11 October 2019 as anticipated. 

“The board notes that the proposal is non-binding and accordingly there can be no assurances that an offer will ultimately be made for the company.

“This is an announcement falling under Rule 2.4 of the Code and does not constitute an announcement of a firm intention to make an offer for Murgitroyd under Rule 2.7 of the Code. 

“Rule 2.6(a) of the Code, requires that Sovereign must, by not later than 5.00 p.m. on 12 November 2019, being the 28th day following the date of this announcement, either announce a firm intention to make an offer for the company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

“This deadline will only be extended with the consent of the Panel on Takeovers and Mergers, in accordance with Rule 2.6(c) of the Code.”