Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Hogg Robinson shares soar on American Express GBT takeover bid and sale of unit to Visa

American Express GBT has offered 120p per share for Hogg while Visa will pay £141.8mln for its Fraedom business
plane
Hogg Robinson provides corporate travel services

Hogg Robinson Group PLC(LON:HRG) shares surged after saying it has received a takeover offer from American Express Global Business Travel and has also agreed to sell its payments technology business to Visa Inc.

AmEx GBT has offered 120p per share for Hogg, which values the British business travel company at up to £393mln and represents a 54% premium to the stock's closing price on Thursday.

Hogg said Visa will pay £141.8mln for Fraedom, which provides payments and expense management technology to financial institutions.

Shares jumped 48% to 116.12p in afternoon deals.

Attractive deal

"Today's deal is attractive for Hogg Robinson Group's shareholders and an exciting next step for Fraedom," said Hogg’s chief operating officer, William Brindle.

"This combination will mean that Fraedom's employees and their clients will benefit from Visa's reach and deep knowledge of the digital payments industry."

The proposed takeover is not conditional upon completion of the Fraedom sale.

The company said even if an acquisition by AmEX GBT does not go ahead, the proceeds from its disposal of Fraedom will strengthen its financial position and allow it to invest in its remaining businesses, make payments to its pension scheme and potentially return capital to shareholders. 

American Express is a major shareholder in AmEx GBT but the business has been a separate entity since 2014. 

View full HRG profile View Profile

Hogg Robinson Group PLC Timeline

Related Articles

Vault online software in the cloud image
August 08 2018
The company has achieved strong sales on the back of its risk and safety management software systems.
Data servers
July 31 2018
The company is expected to list on the main board of the LSE in September
remote meeting
August 14 2018
The acquisition of MeetingZone earlier this year has been called “transformational” by LoopUp bosses

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use