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Sanne in advanced takeover talks with Apex
2nd Aug 2021 07:59
(Sharecast News) - Fund administrator Sanne said on Monday that it is in advanced talks with Apex Group about a possible takeover at 920p per share in cash.
The possible offer represents a 52.6% premium to the closing share price on 13 May, which is the day before the commencement of the current offer period.
Sanne said the possible offer is at a value the board would recommend.
"Apex is well advanced in its due diligence review and is working closely with Sanne to complete the review as quickly as possible," it said. It added that there is no certainty an offer will be made and that a further announcement will be made if and when appropriate.
Sanne is already in discussions with private equity firm Cinven about a possible offer at 875p a share, having rejected an 850p a share offer in May.
At 0910 BST, the shares were up 8% at 911p.
Broker Liberum said: "We had expected news prior to 6 August, which is the takeover deadline for a firm offer from Cinven, so we should hear in the next couple of days whether Cinven intends to counter-bid.
"The possible Apex offer would value the business at an EV/EBITDA of 22.3x, based on our CY 21 EBITDA estimate of £67.1m (which includes a £0.5m EBITDA contribution from the acquisition of PraxisIFM's European fund administration business that was announced last week).
"Given the board has announced it would recommend a firm offer from Apex at 920p/share, we expect that a takeover will go through. This provides more evidence of private equity appetite for professional services companies and the willingness to pay attractive premia to the listed valuations."
Apex has until 30 August to either announce a firm intention to make an offer for Sanne or walk away.
The possible offer represents a 52.6% premium to the closing share price on 13 May, which is the day before the commencement of the current offer period.
Sanne said the possible offer is at a value the board would recommend.
"Apex is well advanced in its due diligence review and is working closely with Sanne to complete the review as quickly as possible," it said. It added that there is no certainty an offer will be made and that a further announcement will be made if and when appropriate.
Sanne is already in discussions with private equity firm Cinven about a possible offer at 875p a share, having rejected an 850p a share offer in May.
At 0910 BST, the shares were up 8% at 911p.
Broker Liberum said: "We had expected news prior to 6 August, which is the takeover deadline for a firm offer from Cinven, so we should hear in the next couple of days whether Cinven intends to counter-bid.
"The possible Apex offer would value the business at an EV/EBITDA of 22.3x, based on our CY 21 EBITDA estimate of £67.1m (which includes a £0.5m EBITDA contribution from the acquisition of PraxisIFM's European fund administration business that was announced last week).
"Given the board has announced it would recommend a firm offer from Apex at 920p/share, we expect that a takeover will go through. This provides more evidence of private equity appetite for professional services companies and the willingness to pay attractive premia to the listed valuations."
Apex has until 30 August to either announce a firm intention to make an offer for Sanne or walk away.