10 Jul 2023
Insight
UK
In June 2023, there were five Rule 2.7 announcements made across the UK public M&A market and a further two possible offers announced.
Firm Offers announced this month:
- Recommended cash offer by EQT Fund Management S.à r.l. and Abu Dhabi Investment Authority for Dechra Pharmaceuticals PLC - £4.5 billion – public to private
- Recommended cash offer by Associated British Foods plc for National Milk Records plc - £48 million
- Recommended cash offer by Brookfield Business Partners L.P. and Brookfield Asset Management Ltd for Network International Holdings plc - £2.2 billion – public to private
- Recommended cash offer by Teddy Sagi for Best of the Best plc - £45.3 million – public to private
- Recommended cash offer by Alpha Auto Group Holdings LP for Lookers plc - £465.4 million
Possible Offers announced this month:
- Strategic review announced by FireAngel Safety Technology Group plc
- Possible cash offer by EQT Fund Management S.à r.l for Alfa Financial Software Holdings PLC - £614.58 million
Firm Offers breakdown this month:
Year to date breakdown:
June 2023 Updates:
Shareholder activism podcast
In the second episode of our shareholder activism podcast series, we talk about how companies should, and increasingly are, planning for an approach by an activist. We discuss in particular:
- what companies can be doing now so that they are ready in the event of an activist coming on to their share register; and
- how boards should respond at the point when an activist does make an approach or acquires shares in the company.
To listen to the full conversation, please visit SoundCloud, iTunes or Spotify.
Further information on shareholder activism can be found on the Shareholder activism hub on our website.
June 2023 Insights:
| Public M&A deal activity in June has halved compared with 2022, with five firm offers and two possible offers announced. This continues the trend of generally lower deal activity that has been seen throughout 2023 as uncertainty continues to exist within the markets, although deal levels are gradually increasing. However, it is interesting to note that compared with the number of firm offers in H1 2022, deal activity levels have been much steadier throughout 2023 as market conditions have remained consistent, albeit not as active as H1 2022. |
This year has now seen two firm offers made by the private individual, Teddy Sagi. The first firm offer was made for Kape Technologies plc in February 2023 at a value of £1.27 billion, one of the largest offers seen so far this year. The deal completed in April 2023. Teddy Sagi has now made a second firm offer, this time for Best of the Best plc at a value of £45.3 million. Following a number of market purchases, Teddy Sagi increased his stake from 29.9% to 38.67% and had to make a mandatory offer for the remaining shares under Rule 9 of the Code. Unlike the offer for Kape Technologies plc, this offer was recommended by the board.
Useful links
- Herbert Smith Freehills Takeovers Portal.
- Herbert Smith Freehills Public M&A Podcast Series.
- The Takeover Code.
- The Takeover Panel’s Disclosure Table (detailing offeree companies and offerors currently in an offer period).
Key contacts
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The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
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