Hospitality group Loungers PLC (AIM:LGRS) has rallied more than 28% after accepting a 310p-per-share takeover bid from US private equity firm Fortress.
The offer represents a substantial premium to yesterday’s closing price, prompting Loungers’ shares to be bid higher to reflect the premium valuation.
Fortress’ offer values the AIM-listed company’s shares at £338 million and the enterprise at £350.5 million.
"It was only a matter of time before Loungers was taken over as it never seemed to click with the market despite showing considerable progress since floating in 2019," said AJ Bell's investment director Russ Mould.
He continued: “So many UK-listed companies are being taken over because the market didn’t spot the value on offer.
"Interestingly, it turns out that Loungers put itself up for sale earlier this year because it acknowledged the market wasn’t attributing fair value, so selling to a third party was an alternative way of generating an uplift for shareholders.”
Loungers shares were changing hands at 305p each at the time of writing.