Friday May 9, 12:53 PM
Wincanton makes 290 pence/share indicative cash offer for TDG UPDATE
(Adds detail on proposals, trading, share price)
LONDON (Thomson Financial) - Wincanton Plc. has made an indicative cash offer of 290 pence per share for fellow logistics company TDG Plc (LSE: TDG.L
- news) ., trumping a rival approach from offshore investment group Laxey Partners.
The offer -- less the dividend of 8.75 pence -- represents a premium of about 30 percent to TDG's closing share price on Feb 26, the day before Laxey's announcement.
Wincanton (LSE: WIN.L - news) , now undertaking due diligence, has reserved the right, with the recommendation of TDG, to make an offer for TDG at a lower price and/or to vary the mix of payment specified.
Wincanton said it sees 'attractive opportunities to generate significant profit improvement through both cost-driven synergies and operational, efficiencies and to create value through improved utilisation of the combined property portfolio'.
Earlier on Friday, Laxey re-confirmed its interest in pursuing a possible offer for TDG at 275 pence per share, minus the dividend, and said it had satisfactorily completed due diligence and expected to make a formal offer 'in the near future'.
Separately, TDG gave a trading update in which it said that it has made a good start to the year, with trading in the first three months ahead of its previous expectations and well ahead of the comparable period in 2007.
Consequently, TDG said it expects its first-half profits to be less weighted to the second quarter than was the case last year.
The company said the uncertainty over ownership may have delayed the placing of some orders and constrained its own ability to make acquisitions, but that it still expected to meet its trading expectations for 2008.
At 12.30 p.m., Wincanton shares were down 3 pence at 365-3/4, and TDG was up 41 at 271.
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