Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Acquisition to be announced tomorrow before the market opens...
https://news.sky.com/story/the-hut-group-applies-finishing-touches-to-275m-cult-beauty-takeover-12371999
Having read recent comments from the CEO of Philip Morris saying he sees smoking being banned within the 10 years in the UK, this is clearly an important acquisition. I think Carlyle will realize that too and come back with a counter bid.
I wish it was as easy as that. I agree the premium is significant and that another bidder is unlikely to step in. The fact that the founders support the takeover holds little value here, they dont hold that many shares here, so have little influence. I think shareholders could be supportive here but I do agree with the previous comment that if the deal does not clear the US anti trust / competition hurdle it could get into trouble (UK element should be ok). I am uncertain what is the probability of this happening. I think it is quite low but it is hanging there.
ok, that's a fair reason and comment.
any recent examples of takeovers that failed because they did not receive approval from the foreign-direct investment / CFIUS regime in the United States ? I am trying to make own mind up whether this is an opportunity or not.
Difficult to predict what may happen next. I would say this is an interesting asset to buy. I would be surprised Carlyle to pull up without giving it another go, they already spent a bit of time and money on this. They could jump in bed with someone else if they don't want to do this by themselves. Philip Morris went in with a safe bid, trying not to over pay either. The small premium this is trading at is worth loosing if nothing else happens but this has a potential for further bid and upside.
I think the point here is, another UK company gobbled up by a foreign firm, but more importantly, a company where board had not skin in the game and zero influence on potential take over attacks. The market will determine what it is worth but good to see industry participants taking part in this.