(Alliance News) -Â HWSI Realisation Fund Ltd on Wednesday said it has agreed to be taken over by Cubitt Trade Holdings LLC in a deal worth GBP79.6 million.
Under the offer, HWSI shareholders will receive 55.5 pence per share, being a 91% premium to Tuesday's closing price.
HWSI shares ended up 88% at 54.43 pence in London on Wednesday.
Cubitt Trade is directly wholly-owned by PETRA Group Holdings Ltd. PETRA has completed over ten acquisitions in the US, North American and South American since its establishment in 2011.
"Following HWSIL entering into managed wind-down earlier this year, it was expected that cash would be returned to HWSIL shareholders as loans matured or were realised. The offer provides HWSIL shareholders with a cash alternative at an attractive value in a significantly shorter timeframe than possible under a managed wind-down. It eliminates any risks associated with an ongoing exposure to HWSIL's portfolio and any challenges associated with managing HWSIL during the latter stages of the managed wind-down process," said HWSIL Chair David Warr.
Warr added: "In aggregate, with the 19 pence per HWSIL share returned to HWSIL shareholders in April 2020, the offer will result in HWSIL shareholders having received 74.5 pence per share since HWSIL adopted a managed wind-down strategy and will provide a clean exit for HWSIL shareholders through a single transaction."
By Lucy Heming;Â lucyheming@alliancenews.com
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