LONDON (Alliance News) - Tex Holdings PLC Thursday said it is recommending a takeover offer from Le Bas Investment Trust Ltd that values the company at GBP6.3 million.
In a joint statement, the companies said that Tex shareholders will receive 100 pence in cash for each share they own. Tex's independent directors, as well as Chris Parker, a director connected to Le Bas, have already agreed to vote in favour of the scheme. They represent a 0.49% stake in Tex. The acquisition will be financed through a financing facility with The Royal Bank of Scotland Group PLC and HSBC Bank PLC, as well as cash.
Tex Chairman Anthony Richard Brocas Burrows said the proposed acquisition of Tex will provide a number of operational synergies that will strengthen the group's competitive position.
"The maintenance of a main board listing and management of the Tex's defined benefit pension scheme are obligations that contribute to Tex's cost base and require considerable management time," Burrows said in a statement.
"The cancellation of the listing will deliver immediate cost savings whilst it is proposed that the management of the pension scheme obligations will be consolidated with that of the pension and Assurance Scheme of Edward Le Bas Ltd which we believe will provide a number of benefits to both Tex and the pension scheme," Burrows added.
Burrows said the deal is motivated by the dual objective of providing Tex's minority shareholders with the chance to exit their investment, as well as the strengthening Tex's competitiveness.
Tex was established in 1946 and listed on the main market in 1971. It is mainly involved in plastics injection moulding and tooling procurement, the manufacture and supply of proprietary piling equipment, engineering products and boards and panels.
Burrows and his family and family trusts have owned and controlled the Le Bas Group since 1968, currently through a number of family trusts. These trusts control 22% of Le Bas Investment Trust directly, with the remaining 78% of the Le Bas Investment Trust held by an intermediate holding company, Le Bas Ltd, whose directors are Burrows and his wife. The intermediate holding company is owned by the EB Burrows 2001 Settlement Trust, whose beneficiary is Burrow's son.
In addition to its interest in Tex, Le Bas Investment Trust owns Edward Le Bas Ltd, which is the holding company of Edward Le Bas Properties Ltd. Tex will be owned by a group beneficially owned by the Burrows family, which will continue its current business as well as its own activities in property.
Tex shares Thursday closed at 85.50 pence, up 2.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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