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SMALL-CAP WINNERS & LOSERS: Kin & Carta accepts private equity buyout

18th Oct 2023 10:06

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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Kin & Carta PLC, up 40% at 109.5 pence, 12-month range 55.2p-253.5p. The London-based business consultancy accepts a takeover offer from Kelvin UK Bidco, a newly formed company owned indirectly by funds advised by UK private equity firm Apax Partners. Kin & Carta will receive 110 pence in cash for each share, which constitutes a 41% premium to its closing price of 78p on Tuesday. The offer values the company at around GBP203 million on a fully diluted basis. "The changing economic backdrop has highlighted the importance of scale and diversification in the [Digital Transformation] sector. Apax believes that as a private company, Kin & Carta will be better placed to make the investments necessary to position the business for long-term success," the firms say. Kin & Carta says its directors believe the offer to be "fair and reasonable", having taken advice from Citigroup. They unanimously recommend shareholders vote in favour of the deal at an upcoming general meeting.

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EnQuest PLC, up 5.4% at 16.02p, 12-month range 13.37p-29.86p. The London-based energy company with assets in the UK and Malaysia's stock rises as JPMorgan raises the target price to 30p from 27p. The US bank maintains its 'overweight' rating for the stock.

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SMALL-CAP - LOSERS

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Pendragon PLC, down 8.1% at 31.22p,12-month range 14.85p-35.95p. Late Tuesday, Autonation Inc confirmed that it does not intend to make an offer for the Nottingham, England-based automotive retailer. In September, Pendragon received an unsolicited proposal from AutoNation to acquire the company for 32p per share, cash. Also in September, Pendragon had received a revised takeover offer by Hedin Mobility Group AG and PAG International Ltd worth 32p per share, up 14% from the 28p per share offered previously. In the same month, the company agreed to sell its entire UK motor business and leasing business to its North American rival, Lithia Motors. Following completion of the disposal, Pendragon will operate as a standalone Pinewood business, making it a pure-play software as a service business.

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By Elizabeth Winter, Alliance News senior markets reporter

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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