Two UK Firms Signal Potential Private Equity Takeovers
Ashtead Technology receives £500m offer, while Pollen Street explores going private, raising concerns about London's listing status.
Two United Kingdom-based companies have signaled potential takeovers by private equity firms, a development that could represent a £1 billion blow to the City of London's standing as a global listing venue.
Ashtead Technology, a provider of underwater technology for the offshore energy industry, announced that it had received an unsolicited offer of £500 million from U.S. private equity firm Ember Infrastructure Management. The offer values Ashtead Technology at 615 pence per share. The company's board had previously rejected three prior proposals from Ember.
Shares in Ashtead Technology surged by 60.3 percent, or 205 pence, to 545 pence following the announcement. Under takeover regulations, Ember must submit a firm bid by October 21.
In a separate development, City asset manager Pollen Street confirmed it has initiated a strategic review of its options, which may include the possibility of being taken private. This news also led to a significant jump in its share price, which rose nearly 12.5 percent, or 102 pence, to 917 pence.
The disclosures from Ashtead Technology and Pollen Street are expected to intensify concerns about the ongoing trend of companies delisting from the London Stock Exchange, potentially diminishing its role as a venue for public listings.