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Arrow founder supports fourth TDR bid approach
8th Feb 2021 07:54
(Sharecast News) - Arrow Global shares soared after private equity firm TDR Capital said it made a fourth approach to buy the company that was supported by Arrow's founder.
TDR said it proposed on 5 February a deal to buy the distressed credit asset manager for 305p a share in cash, valuing it at about £544m. The potential price is a 36.2% premium to Arrow's closing price on 4 February and 67.3% higher than Arrow's average share price in the preceding three months.
Arrow shares jumped 25% to 288.5p at 10:14 GMT.
TDR said Arrow's founder and chief investment officer, Zachary Lewy, had signed a binding letter of support for the proposal and would vote for the deal. The proposal follows three previous approaches, starting on 2 December at 250p a share and rising to 290p on 26 January. Arrow's board rejected all those approaches.
"There can be no certainty that any further proposal or firm offer will be made, nor as to the terms of any further proposal or firm offer," TDR said. "A further announcement will be made if and when appropriate."
Arrow's board said it was considering the approach. Lewy is continuing to do his job at the company and will not take part when the board discusses the proposal, it said. Lewy would receive almost £12m at the proposed bid price.
TDR said it proposed on 5 February a deal to buy the distressed credit asset manager for 305p a share in cash, valuing it at about £544m. The potential price is a 36.2% premium to Arrow's closing price on 4 February and 67.3% higher than Arrow's average share price in the preceding three months.
Arrow shares jumped 25% to 288.5p at 10:14 GMT.
TDR said Arrow's founder and chief investment officer, Zachary Lewy, had signed a binding letter of support for the proposal and would vote for the deal. The proposal follows three previous approaches, starting on 2 December at 250p a share and rising to 290p on 26 January. Arrow's board rejected all those approaches.
"There can be no certainty that any further proposal or firm offer will be made, nor as to the terms of any further proposal or firm offer," TDR said. "A further announcement will be made if and when appropriate."
Arrow's board said it was considering the approach. Lewy is continuing to do his job at the company and will not take part when the board discusses the proposal, it said. Lewy would receive almost £12m at the proposed bid price.