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TOP NEWS: Hogg Robinson Receives Takeover Offer, To Sell Fraedom Unit

Fri, 9th Feb 2018 08:05

LONDON (Alliance News) - Corporate services provider Hogg Robinson Group PLC announced Friday it has received a takeover offer from American Express Global Travel, and will sell its Fraedom business.

GBT is to pay a maximum of 120.00 pence to each Hogg shareholder in cash or a minimum of 110.00p per share, with the minimum price to be paid if the Fraedom sale does not go ahead.

GBT said the two potential considerations would value Hogg at either GBP376.3 million or GBP410.6 million, based on Hogg's share price of 76.00p at the close on September 7 last year when the offer was made. The offer represents a premium of 45% or 58% to that price.

Hogg shares closed on Thursday at 78.00p, giving it a market capitalisation of approximately GBP255.5 million.

Hogg has entered into a conditional agreement with Visa to sell its software-as-a-service business Fraedom for GBP141.8 million in cash. Following a sale of Fraedom Hogg's business would solely comprise of its travel management company HRG.

The company said the proposed sale of Fraedom would bring even greater value to shareholders, given that it would add 10.00p to the offer price for the group. Should the takeover not go ahead, it said, the cash from the Fraedom sale would be used to invest in the remaining company's further growth.

Hogg's Chief Operating Officer William Brindle said: "Today's deal is attractive for Hogg Robinson Group's shareholders and an exciting next step for Fraedom. This combination will mean that Fraedom's employees and their clients will benefit from Visa's reach and deep knowledge of the digital payments industry.

"Under the company's leadership, Fraedom has become a leading software-as-a-service technology company and we wish them further success under new ownership."

By George Collard;

Copyright 2018 Alliance News Limited. All Rights Reserved.

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