- Sureserve board recommends 125p per share offer
- Network International receives 400p per share offer
- Overseas buyers take advantage of cheap valuations
In what has become a familiar ritual, UK energy services group Sureserve (SUR) and payment solutions firm Network International (NETW) revealed they had both been targeted by private equity bidders.
Sureserve shares jumped 37% to 123p, their highest level since the firm floated eight years ago and just shy of the 125p per share offer, while Network International shares climbed 10% to 395p.
WHO IS BIDDING FOR SURESERVE?
Sureserve is one of the leading energy services providers to the social housing sector and offers inspection, compliance, installation and maintenance services in the areas of heating, insulation and renewable energy.
Cap10, a pan-European private equity firm which targets small- and mid-cap companies, said it was attracted to the business by its ‘strong defensive foundations as a provider of essential non-discretionary services underpinned by increasingly demanding regulations’.
It also argued that under private ownership, ‘with the ability to focus on long-term strategic goals and the right access to capital, Sureserve will be able to accelerate its growth significantly both organically and through M&A (mergers and acquisitions)’.
Sureserve’s directors have recommended the bid, which is supported by Harwood Capital and Miren Rawlings, widow of the former chief executive Steve Rawlings, who between them control around 39 million shares or 23.4% of the share capital.
Other significant shareholders include Slater Investments, which this morning confirmed it held 26.3 million shares or 15.8% of the outstanding equity capital.
WHO IS CHASING NETWORK INTERNATIONAL?
In response to media speculation, Network International revealed it had received a ‘highly preliminary, non-binding proposal’ regarding a cash offer of 400p per share for the company from Canadian asset manager Brookfield, the same firm which took over UK home repair business Homeserve last year for £4.1 billion.
Network International is headquartered in Dubai and operates a digital payments system across the Middle East and Africa, but its shares are listed in London.
The Brookfield bid tops a recent offer of 387p per share from a consortium of CVC Advisors and Francisco Partners Management but unlike the bid for Sureserve it hasn’t been recommended by the board, which has said it is ‘evaluating’ the offer.
