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DX Group PLC on Thursday said it has agreed to a cash takeover offer from funds managed by HIG Capital LLC and advised by HIG European Capital Partners LLC.
DX shareholders will be entitled to receive 48.5 pence per share. This will consist of 47.5p in cash and a 1p final dividend for the year ended July 1. This is a premium of 33% to DX’s 36.5p closing price on September 8, the last business day before HIG Capital confirmed that it had made an offer for DX.
DX Group shares were up 7.4% at 46.70p each on Thursday morning in London.
The deal values the Slough, England-based parcel delivery company’s total equity at £314.8 million.
HIG European said DX shares ‘continue to suffer from limited secondary market liquidity’, and that DX ‘can better reach its full potential in a private market setting with a greater focus on longer term value creation, enabled by the acceleration of investment in growth.’
Additionally, the small and medium-sized enterprise investor said acquiring DX will give it the opportunity to enter new markets.
DX Chair Mark Hammond said: ‘The offer...recognises the value of the platform that has been built, offers shareholders an opportunity to crystallise an attractive value for their holdings and provides DX with an excellent partner for the next stage of its development.’
Liad Meidar, managing partner of Gatemore Capital Management LLP, commented: ‘We are pleased to have played a central role in the rescue of DX and in working closely...to oversee an exceptional turnaround and build DX into a market leader. The company has a bright future ahead and we wish them continued success.’
Gatmore Capital is DX’s largest shareholder, with a 19% stake.
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