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Brady goes private after Hanover offer

Snapshot

The company provides trading and risk management software for the commodity and energy markets covering the entire trading operation

Data stream

Quick facts: Brady PLC

Price: - -

AIM:BRY
Market: AIM
Market Cap: -
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  • Provides trading and risk management software

  • Acquired by Hanover at a 171% premium

 

 

What Brady does

Brady PLC provides trading and risk management software for the Commodity and Energy markets covering the entire trading operation from capture of financial and physical trading, through risk management, handling of physical operations, back office financials and treasury settlement, for energy, refined and unrefined metals, soft commodities and agricultural products.

The company says it has 200 customers worldwide, including some of the largest global financial institutions and corporations.

How it's doing

In October 2019, Brady received a takeover offer from finance group Hanover pitched at 10p per share and valuing the group at £8.3mln.

Weeks later, Hanover agreed to provide Brady with £1.25mln to boost its working capital with another £2.75mln to come if the takeover was going to be accepted.

On 18 November, Brady announced it received a counteroffer by an unnamed bidder, to which Hanover responded by upping its offer at 18p per share or £15mln.

It represented a premium of 171% over Brady’s 6.63p share price at closing on 11 October, the day when the first announcement was made, as well as an 80% hike on the original offer.

Brady later secured a £5mln loan from Hanover to accept the offer.

Brady said it would draw down £3mln under the new facility, adding that the entire amount was going to provide enough cash to fund itself to January as well as support through an “anticipated low point” in February.

The stock was delisted from AIM on 8 January.

What the boss says: Carmen Carey, chief executive

"[the new strategy] is focussed on nurturing our customers, improving execution fundamentals, expanding our reach and ensuring we secure our market leadership position during this exciting time in the trading and risk management industry."

"With this new strategy and a new and experienced board in place, we believe we are well-positioned to deliver a scalable, predictable and sustainable business."

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