(Alliance News) - UK Mortgages Ltd on Monday said it will review its future strategy after M&G Investment Management Ltd abandoned its takeover bid for the company.
Earlier in August, the closed-ended investment company had said it would launch a strategy which would seek to maximise value, provide pathway to enhanced liquidity, and narrow or remove share price discount to net asset value. It added that the review "would not consider a formal sale process" or merger.
Chair Chris Waldron on Monday said: "While the offer period has now ended the board is very aware of the feedback from shareholders received through the period. The board is committed to ensuring that the review of future strategy provides shareholders with a strategy that delivers a clear pathway to enhanced liquidity as well as a narrowing and removal of the discount at which the shares trade versus the net asset value."
M&G Investment Management Ltd on Friday had said it is no longer interested in buying UK Mortgages.
This was after UK Mortgages, on Thursday, had rejected the final 70 pence per share takeover offer made by M&G Investment Management, stating that the offer undervalued the company and its prospects.
The 70p per share offer valued UK Mortgages at around GBP191 million. The offer represented a 26% premium on UK Mortgages' closing share price of 55.5p on July 17 which was the last full day of trading before its initial takeover announcement on July 20.
M&G Investment Management is an asset manager and part of M&G Group. Both M&G Investment Management and M&G Group are fully owned subsidiaries of M&G PLC, the FTSE 100-listed international savings and investment business.
UK Mortgages shares were trading 0.5% lower at 63.50p each on Monday morning in London. Shares in M&G were up 2.7% at 184.50p each.
By Tapan Panchal; tapanpanchal@alliancenews.com
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