12th Sep 2023 13:04
(Alliance News) - HIG European Capital Partners LLP on Tuesday confirmed it has made a possible all-cash offer for DX Group PLC, while DX's largest shareholder confirmed it supports the approach.
Slough, England-based parcel delivery company DX late Monday had said it received the offer from HIG, an affiliate of Miami, Florida-based HIG Capital LLC, and was minded to accept it, having rejected a series of prior proposals from HIG.
The potential offer is for 48.5 pence per share. This would value all of DX at GBP293.4 million. DX shares were up 1.0% at 43.44p midday Tuesday, having closed up 18% on Monday.
HIG said it has received letters of intent in support of its offer from Gatemore Capital Management LLP for its 19.0% stake in DX and from former DX chief executive Lloyd Dunn for his 12.6% holding, meaning 31.6% in total.
Gatemore has been DX Group's largest shareholder since 2017. At the time, it led a campaign to replace the DX Group board, and this resulted in the appointment of Dunn as CEO. He left the company in September last year.
HIG said it will conduct confirmatory due diligence, and there is no certainty it will make an formal offer. It has until October 9 to do so.
By Tom Waite, Alliance News editor
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