SHARES in Produce Investments leapt more than 30 per cent after the board of the potato and daffodil company backed a takeover offer valuing the business at around £53 million.
Directors of the Borders-based company have recommended the bid from a new entity owned and controlled by Promethean Investments, the private equity firm established by the late Sir Peter Burt.
The bid, which represents a 35.44% premium to the company’s closing share price of 142.5p on September 10, looks to have triggered a multi-million-pound pay-off for Produce Investments’ chairman Ronald Clapham. In an initial announcement to the stock market, it was confirmed Mr Clapham had agreed to sell an initial 10.79 per cent stake in the company. It was then confirmed later in the day that he had sold a further 10.83%.
Under the bid, shareholders can elect to receive 98.43p per share as well as one unit, which comprises one new share in April 1983 (the Promethean bidco) and one April 1983 loan note.
Michael Burt, managing partner of Promethean Investments, said the deal “represents an opportunity for Produce Investments shareholders to exit at a significant premium to the current market value”.
Shares closed up 45p at 187.5p.
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