14th May 2021 09:22
(Alliance News) - Sanne Group PLC on Friday said it has rejected three unsolicited takeover proposals from Cinven Ltd in recent months, including one worth 830 pence per share which it believes significantly undervalues the company.
Shares in Sanne jumped 26% to 758.00p in London, making it the top performer in the FTSE 250.
The London-based company called the approach "opportunistic" and said didn't reflect its prospects as the economy recovers. As a standalone company, Sanne benefits from high margins, unique technology and high demand for its services, it said.
Cinven had earlier on Friday confirmed following a media report that it proposed a possible offer of 830 pence per share for Sanne, which was rejected.
The London-based private equity firm said it is considering its position and there can be no certainty any offer will be made.
Sky News reported late on Thursday that Cinven offered GBP1.3 billion for the Sanne, a provider of fund administration services to asset managers and companies.
Cinven said it made the approach on May 4 and that Sanne rejected it on May 12.
The 830p-per-share proposal is a 38% premium to Sanne's closing price on Thursday of 603.00p. Sanne shareholders would have retained the right to receive the 9.9p-per-share final dividend if the offer had gone ahead, Cinven said.
Cinven has until the end of business on June 11 to either make a firm offer for Sanne or walk away.
Sanne's shares have more than tripled since their 2015 initial public offering, although they remain off their peak of 830p achieved in 2017. The company was previously owned by Infexion, another private equity firm.
By Ivan Edwards; [email protected]
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