29th May 2024 08:33
(Alliance News) - Foresight Sustainable Forestry Co PLC on Wednesday said it has agreed to a takeover by Averon Park Ltd, a firm seeking opportunities to commit capital to trading businesses.
Averon Park offered 97 pence per share to the forestry investment trust managed by Foresight Group LLP, a premium of 33% to Foresight's closing price of 73.0p each on Tuesday.
Foresight Sustainable's directors consider the terms of the offer fair and reasonable, having been advised by brokers Stifel.
Foresight Sustainable shares jumped 28% to 93.40p each on Wednesday morning in London.
The offer values Foresight Sustainable around GBP167 million. The companies expect the takeover to become effective in the third quarter of 2024.
Both Averon and Foresight are based in the Shard building in London.
The takeover is via Averon's newly formed vehicle Arizona Bidco.
Foresight Sustainable Chair Richard Davidson said: "The offer from Arizona Bidco is at a price that represents a significant premium to the volume weighted average price for the past three months. We believe this offer represents good value for shareholders, and therefore we are recommending it. The structure of the deal means investors can continue to participate in the compelling investment fundamentals presented by the forestry and carbon credit industries through a private structure."
Graham Russell, independent non-executive director of Averon Park, said: "Since its IPO, the FSFC team has rapidly developed its portfolio to become a leading forestry and afforestation player in the UK. Demand for domestic sources of timber and high integrity carbon credits is increasing, and the transaction presents good value for all involved and a great opportunity to grow the portfolio."
By Tom Budszus, Alliance News slot editor
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