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Sanne, the UK-listed fund management firm, has agreed to talks with private equity firm Cinven over a potential £1.4bn takeover after repeatedly rejecting its previous approaches.
The buyout group has stepped up its search for the company with a fifth possible offer, with Sanne valued at 875p per share.
Sanne, a Jersey-based FTSE 250 company, said Friday it would hold talks with Cinven about the higher offer. It rejected an 850p proposal late last month because it did not reflect the company’s prospects.
Sanne’s board has “decided to enter into discussions with Cinven,” it said in a statement on Friday, adding that there was “no assurance that an offer will be made, nor the terms of any such offer”.
Shares, which closed at 769p on Thursday, rose to 865.5p Friday morning.
Sanne’s fund service teams specialize in private debt, real assets, private equity and hedge funds. It also provides fiduciary, administrative, accounting, governance and tax compliance services. Last year, revenues rose 7.3 percent to £169.7 million, while operating profit rose 8.4 percent to £48 million.
Sanne was previously owned by private equity group Inflexion before it was listed in London in 2015.
Under UK takeover rules, the groups have until July 9 to make a deal or walk away, although they can apply for an extension.
It is the latest move for a UK-listed private equity firm at a time when the effects of the pandemic and the uncertainty surrounding Brexit have weighed on valuations.
Publicly traded groups including UDG Healthcare, St Modwen Properties, pub chain Marston’s, energy supplier Aggreko and private jet service company Signature Aviation have all been targeted by buyout groups this year.
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