RE: Possible Bid29 Apr 2024 16:56
No, but Peel Hunt say the following about recent UK M&A:
Key themes
Going up the market cap – Of the 12 transactions announced in 1Q24, seven are in the FTSE 350, two in the FTSE Smallcap, and three on AIM. In FY23, 39 transactions were announced of which two were in the FTSE 350, 14 in the FTSE Smallcap, 19 on AIM and four other.
Increase in pace – There was a slow start to FY23 with 13 offers announced in 1H, which increased to 26 in 2H. The heightened pace of M&A has continued thus far in FY24.
More corporate buyers – Last year, the majority (56%) of offers were from financial buyers as well as the majority by value (77%). However, corporate buyers have dominated in 2024 as the rate environment and economic outlook have become clearer.
Multiple offers – Last year, six of the 39 bids saw a bump in the price. This largely reflected shareholder pressure to raise the initial offer rather than a competing buyer. We have seen three competitive bid situations this year, with the contest for Wincanton resulting in a premium of 104%, and the latest offer for Spirent pitched at an 86% premium.
High premiums – The average premium thus far in FY24 is 38%, which may sound skinny given the depressed valuations in the UK. However, the average premium is 55% if we just look at cash offers.
Overseas appetite – There has been greater activity thus far from domestic bidders (67% of the total), as well as a greater number of all-share offers. This excludes the overseas offers for Currys and Direct Line, which were both rejected by their boards.
www.peelhunt.com/news-events/articles/uk-ma-feeding-frenzy/