(Alliance News) - Sanne Group PLC said Friday it has agreed to enter talks with Cinven Limited, after the private equity firm raised its takeover offer for Sanne to GBP1.42 billion.
The London-based provider of alternative asset and corporate services has agreed to extend the put-up-or-shut-up deadline for Cinven to either announce a firm offer or walk away. The new deadline is July 9. There can be no certainty an offer will be made, Sanne said.
Cinven has made five unsolicited approaches to Sanne. Its latest is for 875 pence per share in cash. The company's shares closed at 772.00p each in London on Thursday, with the latest offer representing a premium of 13%.
Sanne Group shares were trading up 12% at 863.00p on Friday morning.
Sanne's shares have more than quadrupled since the company's 2015 initial public offering at 200p. On Friday, they surpassed their previous peak of 830p in 2017. The company was previously owned by another private equity firm, Inflexion Private Equity Partners LLP.
Sanne has rejected four previous unsolicited offers from Cinven. Most recently, in May, it rejected an 850p per share offer.
A previous offer in May of 830p per share was rejected by Sanne as significantly undervaluing the company as the economy recovered and called the approach "opportunistic". Sanne noted that as a stand alone company it benefits from high margins, unique technology and high demand for its services.
By Scarlett Butler; scarlettbutler@alliancenews.com
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