Abbie Glennie, co-manager of Abrdn UK Smaller Companies Fund13 May 2025 09:37
'Investors should sit up and take notice of why private equity firms are snapping up cheap UK smaller companies, fund managers say.
The UK's stock market listed smaller companies are repeatedly becoming the target of takeover activity, as bargain share prices and a lack of interest from investors offer a chance for private equity buyers to grab value.'
'He said: 'These discounts reflect the negative sentiment that we've seen towards UK smaller companies in recent times. True it's been a tough period for the sector – with weaker performance and tightening regulation. But ultimately negative sentiment is just that – sentiment.'
The average premium paid in small cap takeovers compared with undisturbed share prices over the past 18 months is over 50 per cent, according to Ken Wotton, of Gresham House's Strategic Equity Capital. '