Foresight Sustainable Forestry Company PLC (LSE:FSF), the investment group, has become the latest company to quit the London Stock Exchange after it agreed to be bought by private equity.
Management at the forestry investment firm said it was in favour of a £167 million offer from Averon Park, adding that the company will delist immediately after the deal goes through.
Averon Park offered to buy all of FSF’s shares at 97p each, representing around a 33% premium to yesterday’s closing price of 71.2p.
Completion of the deal is expected to occur in the third quarter of 2024, only three years after FSF listed in London.
Shares in the group rose by around 29% on Wednesday to reach 94.5p.
Richard Davidson, FSF’s chairman, welcomed the offer and said he believed it “represents good value for shareholders”.
He added: “The structure of the deal means investors can continue to participate in the compelling investment fundamentals presented by the forestry and carbon credit industries through a private structure."
Averon argued that since June 2023 FSF’s public listing has hindered its ability to raise additional capital, grow its valuation and improve liquidity.
By taking it private, Averon says it will be able to “allocate further capital” to FSF, positioning it in a better spot “to achieve its growth aspirations… and thereby deliver its environmental potential.”