Premier Technical Services shares rocket on Macquarie bid

20th Jun 2019 10:14

(Sharecast News) - Shares of Premier Technical Services surged on Thursday after it agreed to be bought by a subsidiary of Macquarie Group for £265.3m in cash.Under the terms of the deal, Premier shareholders will receive 210.1p in cash for each of their shares. This is a 141.5% premium to the stock's closing price on Wednesday.As part of the deal, Premier Technical's chief executive officer Paul Teasdale and managing director Roger Teasdale will reinvest the proceeds from the sale of a proportion of their shares. This represents £16.3m and £1.8m, respectively.In addition, certain other senior managers have agreed to reinvest around £1.5m.Chairman John Foley said: "Against the backdrop of an increasingly competitive market for acquisitions, with a need to close deals quickly and fund them effectively, I believe that Macquarie's deep access to funding will better position PTSG to continue with its acquisitive growth strategy."He pointed out that the acquisition price represents a 304% premium to PTSG shareholders who invested upon flotation in 2015.The company's independent directors are recommending that shareholders vote in favour of the deal.At 1025 BST, the shares were up 141% at 209.70p.