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CD&R mulling improved 1,080p a share bid for UDG Healthcare
25th Jun 2021 07:02
(Sharecast News) - UDG Healthcare on Friday said US private equity firm Clayton Dubilier & Rice was considering lifting its bid after pressure from major shareholders, with the new offer valuing the Irish firm at £2.76bn.
The increase offer of 1,080p a share comes ahead of a key shareholder meeting on Friday. UDG and CD&R in May agreed a 1,023p-a-share deal, valuing UDG at £2.6bn, but major shareholders, including Allianz Global Investors and M&G Investments, said the offer undervalued the Irish outfit.
CD&R said it would consider an improved offer if another firm decided to swoop for UDG, whose board said it would accept the latest bid if made.
Allianz and M&G own almost 11.2% of the company between them, and publicly said that they would reject the original deal.
US hedge fund Elliott Investment Management also owns 3.2% and has in the past exerted pressure on bidders to raise offers for listed companies.
CD&R structured its bid as a so-called "scheme of arrangement", which would have required approval of 75% of voting shareholders at an extraordinary general meeting on Friday. However, it adjourned the meeting as it became clear it would struggle to win approval for the deal.
The increase offer of 1,080p a share comes ahead of a key shareholder meeting on Friday. UDG and CD&R in May agreed a 1,023p-a-share deal, valuing UDG at £2.6bn, but major shareholders, including Allianz Global Investors and M&G Investments, said the offer undervalued the Irish outfit.
CD&R said it would consider an improved offer if another firm decided to swoop for UDG, whose board said it would accept the latest bid if made.
Allianz and M&G own almost 11.2% of the company between them, and publicly said that they would reject the original deal.
US hedge fund Elliott Investment Management also owns 3.2% and has in the past exerted pressure on bidders to raise offers for listed companies.
CD&R structured its bid as a so-called "scheme of arrangement", which would have required approval of 75% of voting shareholders at an extraordinary general meeting on Friday. However, it adjourned the meeting as it became clear it would struggle to win approval for the deal.