UK's Finsbury shares jump on $177-million takeover (updated)
20/09/2023 08:37
(Adds sector context in paragraph 2, details of deal in
paragraph 4, details on share move in paragraph 5)
Sept 20 (Reuters) - Shares of Finsbury Food Group
FIF.L surged more than 22% in early trade on Wednesday after
the UK-based bakery group agreed to a 143.4-million-pound
($177.1 million) takeover by Frisbee Bidco, owned by funds
managed by asset management firm DBAY.
The deal comes at a time high inflation in Britain squeezes
disposable incomes, prompting consumers to focus on value
products in the food segment.
Under the deal, shareholders of Finsbury will get 110 pence
per share in cash, representing a premium of 23.6% to the
stock's Tuesday closing price of 89 pence. The company's
directors intend to unanimously recommend shareholders vote in
favour of the deal, according to a statement.
As an alternative to cash, shareholders might elect to
receive a non-voting ordinary share in Bidco for each share of
Finsbury.
Shares of Finsbury, which makes cakes, breads and other
bakery items, hit their highest level since December 2018 at
session high of 109 pence.
DBAY would work with Finsbury's senior management in taking
the business private and intends to seek to cancel the group's
listing on AIM, London's junior stock market, according to a
statement.
($1 = 0.8096 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Mrigank Dhaniwala)
((abyjose.koilparambil@thomsonreuters.com; +917483275231;))