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Tyman PLC on Monday agreed to a £788 million takeover offer from US peer Quanex Building Products Corp.
The cash and shares bid values each Tyman share at 400 pence each, based on the Quanex closing share price of $34.64 on Friday in New York.
Shares in Tyman, a London-based supplier of window and door components to the construction industry, soared 29% to 381.00 pence at the London open on Monday.
For every Tyman share held, investors will receive 240p cash plus 0.05715 of a Quanex share.
Some Tyman shareholders will be able to elect an all-share option worth 0.14288 of a Quanex share for every one held in Tyman. The all-share alternative will be capped at 25% of Tyman shares.
Teleios Capital Partners, who is Tyman’s largest shareholder with 16.4% of the shares, is supporting the bid by Quanex, a Houston, Texas-based metal window and door manufacturing company.
Investment Director at Teleios Capital Partners, Benjamin Schmid said: ‘As a longstanding shareholder of Tyman, Teleios supports Quanex’s proposal, which will create a stronger, combined platform of scale, with significant potential to both consolidate and establish leadership positions in existing and adjacent markets.’
Tyman said all directors, who hold shares in the firm, also back the offer, representing 0.23% of share capital.
Tyman Non-Executive Chair Nicky Hartery said: ‘In the context of a rapidly evolving North American marketplace, our board ultimately determined that this transaction is the best path to maximising value for Tyman shareholders, who will be able to realise a meaningful portion of their holding in cash at a significant premium to the prevailing share price while also participating in the future upside of the enlarged group.’
It is expected that deal will be implemented by way of a court-sanctioned scheme of arrangement, with completion likely in the second half of 2024.
Tyman shareholders will continue to be entitled to receive the final dividend of 9.5p announced on March 7.
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