The proposed offer is at a 68% premium to the undisturbed share price
Companies: Panmure Gordon & Co
Big news in the world of stockbroking today. One of the oldest Brokers in the city, Panmure Gordon, has received an offer from Atlas, the Bob Diamond investment vehicle set up in 2013. Atlas proposes to acquire all the equity other than the 43% stake held by the Qatari group QInvest (plus any shares held by the Wider Joint Bidders Group).
The consideration offered is 100p per share which implies a valuation for the group of £15.5m, 68% above the undisturbed share price and 78% above the average price over the last 12 months.
The deal has been agreed by both QInvest and the Panmure Board. Furthermore, Atlas has received irrevocable undertakings covering over 60% of the equity, including from all the Panmure Board of Directors (0.13% equity), QInvestit (43% equity), and other shareholders (16.9% equity). With this level of Board and shareholder support, the deal looks likely to go ahead.
The strategic plan appears to be to grow Panmure into a larger boutique investment bank. Atlas CEO Matthew Hanson commented:
"We believe there is significant opportunity for Atlas, in partnership with QInvest, to apply our operational skills and financial services expertise to enhance Panmure Gordon's strong reputation and build a larger, successful boutique investment bank."
There were also positive comments from QInvest and Panmure Gordon:
QInvest CEO Tamim Al-Kawari
"We have been major investors in Panmure Gordon for more than seven years and are excited about this opportunity to work with Atlas to develop the business... QInvest will maintain its stake in Panmure Gordon as a core shareholder."
Panmure Gordon Chairman Andrew Adcock
"...the Independent Panmure Gordon Directors unanimously recommend Shareholders vote in favour of the Scheme. We look forward to working with the management of Bidco to ensure an orderly Acquisition is effected in the best interests of all involved"
Our view is that Panmure is one of the longest established Brokers in the city and is a key player, especially in the mid-cap part of the market. It acts as Broker for many of the key growth companies and this deal will put it in an excellent position for the future.
