Canaccord Genuity (TSX:CF, LSE:CF) Asset Management, a key shareholder on Loungers PLC (AIM:LGRS)’s register, has signalled its intention to vote in favour of a 310p-per-share takeover offer from US private equity firm Fortress.
Loungers revealed the cash offer, which came with a healthy 30% premium that valued the AIM-listed hospitality company’s shares at £338 million, on Thursday.
With Cannacord’s approval, roughly 42% of voting shareholders have signalled approval of the deal.
Loungers has reportedly been seeking to close a private equity deal for a while.
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.
According to Dan Coatsworth, investment analyst at AJ Bell: “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 are currently swapping for 305p each.