9th Apr 2026 10:26
(Alliance News) - Van Elle Holdings PLC on Thursday said it has agreed to GBP58.8 million takeover offer from construction firm Strabag.
Shares in Van Elle jumped 55% to 51.01 pence each on Thursday morning in London.
The Nottinghamshire, England-based engineering contractor has accepted Strabag's offer of 52.3 pence per share in cash, which is around 59% above its 33.0p closing price on Wednesday.
The acquisition is by Strabag UK Ltd, a wholly owned indirect subsidiary of Vienna-based Strabag SE.
"The strong strategic fit identified between Strabag UK and Van Elle is expected to drive growth following the transaction, incremental to the respective growth prospects of the current businesses. Complementary client relationships and end markets, particularly in the residential, water, energy and transport sectors, create attractive cross-selling opportunities, broaden the combined civil engineering offering around ground engineering works, and generate revenue synergies," Van Elle said.
It has been considering alternative routes forward since the second half of 2025, and had been in talks with several suitors when it received Strabag's offer in February.
Earlier this year, Van Elle posted an 18% decline in pretax profit for the first half that ended October 31, to GBP1.7 million from GBP2.0 million on-year. Revenue rose 16% to GBP73.4 million, but was offset by higher costs and lower operating income.
Whilst backing its mid-term prospects, Van Elle explained that it sees "limited" potential for an improvement in its share price, citing "the illiquid trading in the Van Elle shares and investor sentiment towards smaller UK-quoted companies remaining subdued."
Chair Frank Nelson commented: "While strongly positioned in a number of key markets, broader sector and macro-economic issues have impacted value creation opportunities. Given the ongoing cycle, the Van Elle board believes that the offer not only represents a significant premium, it also provides shareholders with the certainty of cash consideration and Van Elle's customer base with a supportive sector specialist owner focused on developing its product offering."
The takeover is expected to come into effect by the end of June, with Van Elle noting that it does not intend to pay dividends or return capital before then.
The deal remains subject to approval from Van Elle shareholders and court sanctioning.
Van Elle's directors intend to unanimously recommend Strabag's offer, and those with shares in Van Elle have committed to vote in favour of the deal with respect to their 1.4% holding.
Strabag has irrevocable undertakings in support of the takeover from Van Elle shareholder Rockwood Strategic PLC, managed by Harwood Private Capital LLP and NR Holdings Ltd, representing a 17.6% stake in Van Elle. Otus Capital Management and Peter Gyllenhammar AB, with a 26.1% stake, have also committed to support the deal.
As a result, shareholders with a combined 45% stake in Van Elle have committed to vote in favour of acquisition.
By Holly Munks, Alliance News reporter
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