11th May 2018 07:52
LONDON (Alliance News) - FTSE 250-listed ZPG PLC on Friday recommended to shareholders a GBP2.2 billion takeover offer from Zephyr Bidco Ltd, a subsidiary of funds managed by private equity investor Silver Lake Management Co V LLC.
The offer values each ZPG share at 490.00 pence in cash. This is a 31% premium to the closing price of ZPG on Thursday of 375.20p.
The Daily Mail and General Trust PLC, which currently holds a 29.87% stake in ZPG, has given its support for the acquisition in irrevocable undertakings, stating the the offer is consistent with DMGT's objectives of "increasing portfolio focus and enhancing financial flexibility".
The acquisition is conditional on shareholder approval of no less than 75%, as well as regulatory approval from the European Commission and the Financial Conduct Authority, as well as court approval.
ZPG said it expects the deal to become effective by the third quarter of 2018.
"Silver Lake is the global leader in technology investing and I am firmly of the belief that ZPG will benefit from their technology expertise and global network which will help accelerate our growth. The terms of the acquisition represent an attractive premium that recognises the quality of ZPG's businesses and the strength of its future prospects and allows shareholders to realise today in cash the potential future value of their holdings. I am very excited about the opportunity this offers to our employees, customers and partners as we move to the next stage of ZPG's development and growth," said Chief Executive Officer Alex Chesterman.
ZPG will publish its interim results on May 23.
Related Shares:
DMGT.LZPG PLC