Tclarke becomes the latest firm to leave the London Stock Exchange with £91m buyout
Engineering group Tclarke has become the latest company to have received a takeover offer as buyers continue to circle undervalued firms on the London Stock Exchange.
The company, which was founded in 1889, has received an offer from Regent Acquisitions Limited, part of Regent Group, a leading supplier of gas and metering services to industrial and commercial customers in the UK.
Regent has offered 160p per share in cash for Tclarke as well as a final dividend of 4.525p per share, representing the final dividend for the latter’s financial year ending 31 December 2023.
The deal, which has been agreed by the company’s board, valued the issued share capital of Tclarke at approximately £90.6m and implied a multiple of approximately 11.64 times the company’s earnings per share for the twelve months ended 31 December 2023. The stock closed at 125p per share the day before the deal was announced. The deal is a 25 per cent premium to the closing price.
In a statement accompanying the announcement, the company said: “Notwithstanding the strength of the business and the opportunities for growth, the Tclarke directors realise that the Tclarke shares have consistently traded at a discounted valuation multiple to its core peers in the public markets.
“Further, the Tclarke directors recognise that the market for the Tclarke shares is relatively illiquid, making it challenging for…shareholders to monetise their holdings.. should they so wish.“
The statement went on to add: “The Tclarke directors also believe that, in light of the opportunities, risks and historical trading of the the company’s share price, the offer from Regent of 160 pence per Tclarke share in cash presents an opportunity for Tclarke shareholders to accelerate the crystallisation of a certain value from their investment at an attractive premium, de-risks the return of value and allows full liquidity of their investment.”
Commenting on the acquisition, Deep Valecha, CEO of Regent, said: “Tclarke is a business we have long admired since we started to invest in 2018. It is well run, has a strong culture helped by a commitment to a well-established apprentice scheme which offers career progression and a high degree of staff loyalty.
“I am excited by the opportunities this new chapter present for Tclarke to pursue its long-term strategies to drive sustainable growth and innovation and explore new initiatives.”