Marlowe PLC (AIM:MRL) shares soared 9% in early deals after a report the firm is looking at selling its biggest division.
Sky said the provider of fire safety services backed by Lord Ashcroft, the former Conservative Party treasurer, could net proceeds of about £650mln from the sale of its testing, inspection and certification division, which accounts for the lion's share of its revenue.
Sky cited City sources who said a process to hold exploratory talks with potential bidders had got under way in recent weeks.
Based on recent transactions in the sector, a sale of the unit could yield a valuation of up to 16 times its annual profit, equating to roughly £650mln, it reckoned.
Marlowe was formed as a cash shell by Lord Ashcroft and Alex Dacre, and acquired its first operating business when it bought Swift Fire & Security in 2016.