US-based pawnbroker Firstcash to buy H&T
A US giant has made an offer for the UK’s largest pawnbroker, H&T, taking yet another firm off London’s stock market.
The deal, which was the fourth Firstcash made to the UK firm, valued the share capital of H&T at approximately £297m.
It represents a premium of approximately 44 per cent to the closing price of 458 pence per H&T Share on May 13.
Firstcash said the deal was a “compelling opportunity” to break into the UK market.
UK pawnbrokers like H&T and Ramsdens have been booming since the pandemic, with a combination of high demand for quick cash and an ever-rising gold price contributing to record profit.
Firstcash is currently the leading international operator of pawn shops with a significant presence in the US and Latin American, operating over 3,000 retail locations and employing approximately 18,000 people.
The combination of Firstcash and H&T will create the largest publicly traded pawn platform in the US, Latin America and the UK.
H&T’s board intend to unanimously recommend the deal at its next General Meeting.
Directors of H&T said the deal was an “attractive opportunity” at a at a “level that fairly reflects H&T’s prospects, taking into account its market position, long-term strategy, and the broader macroeconomic environment”.
The directors added that operating as an independent quoted company created “risks” for the long-term future of the company.
“The acquisition accelerates and de-risks the delivery of value to H&T shareholders… the support and backing of a large, well-resourced and well-capitalised, international platform significantly improves the strategic positioning of H&T in its marketplace,” H&T said.
The company noted that the risk of additional cost pressures arising from future employment legislation or tax changes, and the risk of a drop in the gold price, were significant going concerns.
Last year, 88 companies left the LSE, including tech darling Darktrace and Paddy Power-owner Flutter, while just 18 joined it through new listings.