(Alliance News) - Gresham House Energy Storage Fund PLC on Monday noted that Gresham House PLC has agreed to be taken over by Searchlight Capital Partners LP.
Shares in alternative asset manager Gresham House closed up 55% at 1,057.00 pence, giving it a market capitalisation of GBP404.6 million in London on Monday afternoon.
Meanwhile, shares in Gresham House Energy Storage Fund closed up 0.2% to 134.27p each.
Gresham House said it had agreed with Seed Bidco Ltd, a newly incorporated entity formed by funds advised by Searchlight, on a final 1,105 pence per share bid.
The offer values Gresham at around GBP469.8 million on a fully diluted basis, or GBP440.6 million on an enterprise value basis.
The acquisition price represents a 63% premium to the 680 pence closing price of Gresham House on Friday, and implies an enterprise value multiple of around 16 times Gresham House's earnings before interest, tax, depreciation, and amortisation for the year ended December 31.
Searchlight said the bid is final and will not be upped.
Gresham House actively manages GBP8.00 billion in assets across the UK, Ireland, Australia, and New Zealand.
GRID said that its investment manager is Gresham House Asset Management Ltd which is wholly owned by Gresham House.
"There is no change expected to the relationship between the company and the investment manager, and the Gresham House leadership team and all key individuals that have managed GRID since its IPO in 2018 will remain in place," GRID added.
Gresham House Chair Anthony Townsend said: "The acquisition by Searchlight starts a new and exciting chapter for Gresham House. We are confident that Searchlight will accelerate our international and domestic growth strategy and their long-term capital and global expertise will support and enhance our investment teams' ability to deliver returns to clients."
The Gresham House directors said they recognised the offer represented "an attractive opportunity" for shareholders in the current disruptive economic environment.
Searchlight said it was attracted by Gresham House's position as a "leading asset manager in sustainable alternative asset classes" in the UK, and valued its structure, strategy, and management. Searchlight said it "sees significant potential from supporting Gresham House".
Searchlight Partner James Redmayne said: "We are excited to invest in Gresham House and partner with Tony Dalwood and his highly talented management team. Their achievements in building Gresham House over the past eight years to its position as a leading natural capital and sustainability focused asset manager have been hugely impressive."
By Sophie Rose, Alliance News reporter and Will Neill, Alliance News reporter
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Gresham House (GRID)