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

Waterlogic shares race up as unveils £122.6mln recommended offer

Waterlogic shares shot up in afternoon trade after the company revealed it is to be acquired by Poseidon Bidco in a cash offer valuing the firm at around £122.6mln (US$195.2mln).
Waterlogic shares race up as unveils £122.6mln recommended offer

Waterlogic (LON:WTL) shares shot up in afternoon trade after the company revealed it is to be acquired by Poseidon Bidco in a cash offer valuing the firm at around £122.6mln (US$195.2mln).

Waterlogic is a supplier of mains-fed water dispensers and Poseidon is a  newly incorporated company owned by EPIC Funds managed by Castik Capital Sárl to make the acquisition.

Under the terms of the deal, shareholders will receive 151 pence for each Waterlogic share.

This represents a 58.1% premium to the closing price of 95.5 pence per share over the three months before yesterday (Nov 11) and a premium of 32.5% to the closing price of 114 pence yesterday.

Waterlogic says it plans to to unanimously recommend the offer and Poseidon has received irrevocable undertakings to vote in favour of the deal representing around 83.56% of Waterlogic's capital.

Ariel Recanati, Waterlogic's non-exec chairman, said: "Poseidon's recommended cash offer announced today provides Waterlogic Shareholders with the opportunity to exit their investment at a significant premium, while also providing Waterlogic with the solid platform it needs in order to continue its commercial and consumer investment plans and to remain at the forefront of consolidation in its industry."

Michael Phillips of EPIC Funds, added: "Waterlogic is a leading provider of POU systems with strong market positions across a range of international operations. 

"Our strategy is to deploy significant capital to support the growth of the business, both organically and via acquisitions, which would not otherwise be available to Waterlogic as a quoted company suffering from limited liquidity."

Waterlogic shares rose 27.19% to 145p.

View full WTL profile View Profile

Waterlogic Timeline

Newswire
July 28 2014
Article
November 04 2013

© 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