UK-listed fund management business Sanne has agreed to discuss a potential acquisition of £ 1.4 billion with private-equity fund Cinven after repeatedly rejecting its previous approach.
The buyout group valued Sanne at 875p per share and strengthened the company’s pursuit with a fifth offer.
Jersey-based FTSE250 company Sanne said Friday it plans to negotiate a higher offer with Cinven. At the end of last month, it rejected the 850p proposal because it did not reflect the company’s outlook.
“We have decided to start talks with Cinven,” Sanne’s board of directors said in a statement on Friday, adding “the certainty that any offer will be made and the terms of such offer.”
The stock, which closed at 769p on Thursday, soared to 865.5p on Friday morning.
Sanne’s fund services team specializes in private debt, real assets, private equity and hedge funds. We also provide trustee, management, accounting, governance, and tax compliance services. Last year’s sales were up 7.3% to £ 169.7m and operating profit was up 8.4% to £ 48m.
Prior to listing in London in 2015, Sanne was owned by private equity fund Inflexion.
UK acquisition rules require the group to reach an agreement or leave by July 9, but can apply for an extension.
This is the latest move from a private-equity fund to a UK listed company at a time when the impact of the pandemic and uncertainty surrounding Brexit weighed heavily on the valuation.
Listed groups such as UDG Healthcare, St Modwen Properties, pub chain Marston’s, utility Aggreko, and private jet service company Signature Aviation are all targets for acquisition groups this year.
Fund administration group Sanne agrees Cinven talks over £1.4bn deal Source link Fund administration group Sanne agrees Cinven talks over £1.4bn deal