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Shares in U.K.'s K3 slip after group confirms takeover bid from Sun Capital

Published 10/12/2022, 01:22 am
© Reuters.
K3C
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By Scott Kanowsky 

Investing.com -- Shares in K3 Capital Group PLC (LON:K3C) fell on Friday after the British professional services company announced that it is in advanced negotiations with Sun Capital Partners over a potential multimillion-pound takeover by the U.S. private equity group.

In a statement on Thursday confirming earlier media reports, Bolton-based K3 said it has discussed a potential cash offer that would see Sun Capital acquire all of its issued and yet-to-be-issued holdings at a price of 350 pence per K3 share.

The deal would represent a 16.7% premium to the closing price of K3 shares on December 7. According to Reuters calculations, the company would be valued at £257.3 million (£1 = $1.2276).

K3 added that its independent directors have told Sun Capital that they would be "minded" to unanimously back the purchase if a firm proposal is made. Sun Capital must now decide on going forward with the transaction by January 5.

K3 said it has also received interest from "multiple parties," but these entities are reportedly no longer interested in a potential bid for the firm.

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