Eleco plc (ELCO), the UK-listed construction software specialist, is the subject of a recommended all-cash acquisition by Avocet Bidco Limited, a vehicle indirectly wholly owned by funds managed and advised by Accel-KKR. An update published on 3 November 2026 confirms that the stake covered by a non-binding letter of intent from Charles Stanley has been materially reduced through a series of share sales, falling from approximately 7.5 per cent to approximately 4.7 per cent of Eleco's issued ordinary share capital. Investors tracking the scheme vote will note that total committed support now stands at approximately 45.2 per cent of issued share capital.

Key Points

  • Eleco plc (ELCO) is subject to a recommended all-cash acquisition by Avocet Bidco Limited, backed by Accel-KKR
  • Charles Stanley's letter of intent stake has declined from approximately 7.5 per cent to approximately 4.7 per cent, now covering 3,988,716 Eleco shares
  • Total irrevocable undertakings and letters of intent in favour of the scheme stand at 38,112,829 shares, representing approximately 45.2 per cent of issued share capital
  • Investors should watch whether aggregate scheme support reaches the thresholds required for court sanction under Part 26 of the Companies Act 2006

Charles Stanley's Non-Binding Letter of Intent Reduced Through Repeated Share Sales Since September 2026

When the Rule 2.7 Announcement was made on 10 September 2026, Charles Stanley, trading as Raymond James Wealth Management Limited, had provided a non-binding letter of intent covering 6,343,418 Eleco shares, equating to approximately 7.5 per cent of the then-issued ordinary share capital. The announcement states that the letter of intent permitted Charles Stanley to sell, acquire, or otherwise deal in Eleco shares at any time. Following a sustained series of disposals and transfers across multiple trading days between late September and 30 October 2026, the holding subject to the letter of intent has been progressively reduced, with Bidco disclosing each movement through a sequence of formal updates.

Cumulative Disposals Detailed Across Multiple Bidco Announcements Through October 2026

The 3 November 2026 announcement catalogues the full series of Charles Stanley transactions disclosed since the original Rule 2.7 Announcement. These included sales of 765,127 shares before 29 September, further sales and transfers throughout October, and, most recently, the sale of 5,020 shares on 30 October 2026 alongside a transfer of 16,410 shares out of Charles Stanley's discretionary holding, as disclosed via a Form 8.3 announcement released on 2 November 2026. The cumulative effect of these transactions is that the letter of intent now covers 3,988,716 Eleco shares, representing approximately 4.7 per cent of the existing issued ordinary share capital.

Aggregate Scheme Support at 45.2 Per Cent as Accel-KKR Acquisition Moves Toward Court Sanction

The acquisition of Eleco by Avocet Bidco is structured as a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. The scheme document was published to Eleco shareholders on 2 October 2026. As at the close of business on the last business day prior to the 3 November announcement, total shares subject to irrevocable undertakings and non-binding letters of intent stood at 38,112,829, representing approximately 45.2 per cent of issued share capital. Rothschild & Co advises Bidco and Accel-KKR, while Stephens Europe and Cavendish Capital Markets act as financial advisers to Eleco.