15th Mar 2023 11:13
(Alliance News) - Hyve Group PLC on Wednesday agreed to a GBP320 million takeover from Providence Equity Partners LLC.
Hyve is a London-based events organiser, while Providence Equity is a Rhode Island, US-based media-focused equity investment firm.
The bid values each Hyve share at 108.00 pence, a 41% premium to its 77.00p closing price on February 17 in London, the day before Hyve received an approach from Providence.
Shares in Hyve were up 11% to 111.02p each in London on Wednesday morning.
The bid gives Hyve an equity value of GBP320 million and an enterprise value of GBP481 million. The original bid made in February by Providence was 2.8% lower at 105.00p.
The acquisition is conditional on approval by at least 75% of Hyve shareholders at a court meeting, followed by an identical threshold at a general meeting, sanctioning by the court, becoming effective no later than the long stop date of September 15 and anti-trust clearance in the US, alongside the satisfaction of other conditions.
Hyve said the bid announced has the support of Strategic Value Partners LLC, a Hyve shareholder with a 17% interest, after receiving a non-binding letter of intent of the latter's intention to vote in favour of the acquisition at the court meeting and general meeting.
"The board believes the offer represents value for shareholders and that Providence, with their knowledge of the sector and belief in the business and management team, will be a good partner for Hyve," said Chair Richard Last.
"I would like to take this opportunity to recognise the exceptional contribution of our people, whose commitment and hard work have fundamentally changed Hyve for the better, and place us at the forefront of our industry."
Providence Equity added: "Providence believes that Hyve has established a strong platform for future organic and inorganic growth underpinned by Hyve's portfolio of high-quality global brands and market-leading events focused on developed markets and in growing sectors."
It was "delighted" to be investing in Hyve with capital to support its growth plans, Providence Equity Senior Managing Director Andrew Tisdale added.
By Greg Rosenvinge, Alliance News reporter
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