18th Mar 2019 08:17
(Correcting that Mitie is not a FTSE 250 index constituent.)
LONDON (Alliance News) - Outsourcing company Mitie Group PLC is considering a takeover bid for the biggest division of troubled support services firm Interserve PLC, Sky News reported on Sunday.
https://news.sky.com/story/mitie-targets-interserve-lenders-with-support-services-raid-11667201
Late Friday, Interserve said it had entered administration and had been sold to its lenders after investors rejected a proposed share placing as part of its "urgent" deleveraging plan.
Sky News said London Main Market-listed Mitie is planning to offer Interserve's new owners about GBP100 million for its support services division, which manages facilities for the government and private sector clients.
Interserve's lenders, meanwhile, are likely to set a price which is closer to six times the division's earnings, Sky News said. In 2018, Interserve's support services unit delivered operating profit of GBP58.6 million.
Mitie shares were up 1.0% early Monday at 147.90 pence.