Arrow Global Group PLC announced it reached an agreement with Sherwood Acquisitions for a takeover offer, valuing the asset manager at £563mln.

Sherwood is a newly formed company owned by investment funds managed by private equity firm TDR Capital, which has over £6.8bn of committed capital.

The offer price of 307.5p per share represents a premium of 33.4% to Arrow’s closing price of 230.5p on February 5, the last business day before the debt purchaser put itself for sale.

As an alternative to the cash offer, shareholders can choose to receive rollover ordinary shares in the capital of Sherwood.

Arrow’s directors said the offer is fair and reasonable after being advised by Goldman Sachs, J.P. Morgan Cazenove and Numis.

“We believe more value could be extracted over time from an independent business continuing the development of its asset management activities, but now expect that Arrow will cease to be a listed company in due course,” analysts at Peel Hunt commented.

Source: Proactive Investors

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