Apex sweetens offer for Kin + Carta

7th Dec 2023 10:59

(Sharecast News) - Private equity firm Apax Partners has upped its £203m offer for Kin and Carta, the digital transformation consultancy confirmed on Thursday.

The London-listed firm first announced it was being taken private last October, after agreeing a cash deal with Apax worth 110p per share.

At the time, chair John Kerr urged shareholders to back the bid, arguing that the price "fairly represents the opportunities and risks inherent in the business and delivery of Kin and Carta's strategy".

But Coast Capital Management, which holds around 6% of the stock, called on fellow investors to reject the offer, arguing that the price was too low.

However, on Thursday Kin and Carta said that following subsequent negotiations, Apax, through its Kelvin UK bidco, had increased its offer to 120p per share.

The final offer values Kin and Carta's share capital at £220.3m, with an implied enterprise value of £258m.

It also represents a 54% premium to the closing share price of 78p on 17 October, the last trading day before the offer period started. The original offer was a 41% premium.

Kin and Carta's directors have unanimously recommended the increased offer, arguing that it was in the best interest of shareholders.

As at 1045 GMT, shares in Kin and Carta were up 8% at 112p.