Gresham House PLC (AIM:GHE), the alternative investment fund manager, has reached an agreement to be bought by Searchlight Capital, the private equity firm, for around £470mln.
Subject to shareholders’ approval of the deal, each share will be purchased at 1,105p - a 63% premium to Gresham Houses’ Friday closing price of 680p.
The bid also represents a 10% increase compared to the fund manager’s highest-ever close of 1,005p back in April 2022.
Anthony Townsend, chairman of Gresham House, said the offer is four times the amount shareholders would have invested back in 2014 when management bought in.
He added: “The Gresham House Board believes that it represents a compelling opportunity in the current challenging economic environment for shareholders to realise, with certainty, the potential for long-term future value creation.”
Gresham House’s board believes the offer is “fair and reasonable” and said the reason for the purchase was Searchlight’s interest in its sustainable alternative asset classes.
A company statement said: “[Searchlight] believes that Gresham House has established a robust platform for future growth, underpinned by its track record of delivering strong investment returns for its clients across multiple strategies, asset classes and regions.”
Searchlight Capital added that it was impressed with how the fund became “a leading Natural Capital and Sustainability focused asset manager” within the last eight years.
Shares in Gresham House opened over 50% higher on Monday, nearing the 1,060p mark.