- Company confirms approach
- Shares almost double
- Bridgepoint has till 29 May to make offer
Global specialist consultancy services provider to the asset management and insurance industries Alpha Financial Markets (AFM) saw its shares almost double at one point to 460p after the company confirmed bid interest from private equity groups.
Responding to press speculation the board said it had received a non-binding offer from Bridgepoint regarding a possible cash offer and confirmed Cinven Limited was also considering a possible offer for the group.
Sky News reported a third financial investor, New Mountain Capital, was also interested in a potential deal.
The share price gains take the shares back to flat over the last year and close to the all-time highs near 500p.
Under stock exchange rules, Bridgepoint has until 29 May 2024 to make a formal offer or walk away.
The strong move in the shares reflects prospects for a potential bidding war for the company as multiple parties circle and the fact management have not confirmed a price point regarding the Bridgepoint potential offer.
Last month (11 April), Alpha said it expected to deliver net fee income growth of 3% in the first half compared with the prior year and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) of between £42 million and £43 million.
Chief executive Luc Banque commented: ‘As noted last in February, challenging conditions remain, and the market environment continues to rebalance supply & demand. However, it is encouraging to see some improvement in market conditions and increased sales wins in recent months and going into FY 25.
‘With the Group's ongoing strong pipeline, leading expertise, strong propositions and multiple growth opportunities, we remain well positioned for future growth.’
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