JTC Plc has rebuffed a preliminary takeover proposal from Permira that valued the London-listed corporate services and fund solutions provider at about £2bn ($2.7bn), according to a Bloomberg report.

The board of JTC said it unanimously rejected Permira’s latest non-binding cash offer on August 27, having also turned down an earlier approach. While Permira confirmed its interest, it noted there is no certainty a firm offer will follow. Under UK takeover rules, the private equity firm has until September 26 to either table a formal bid or walk away.

The news sent JTC shares soaring as much as 17% to a record intraday high, before closing up 13%, giving the company a market capitalisation of about £1.9bn. The stock had already been gaining momentum, rising 9% in the past ten sessions, after the company signalled it was set to deliver its multiyear growth plan ahead of schedule. JTC has also been expanding through acquisitions, including its recent £20m purchase of Kleinwort Hambros Trust.

Permira is being advised by Jefferies Financial Group, while JTC is working with Deutsche Numis and Robert W. Baird.

Permira has a track record in the corporate services and fund administration sector, having invested in Luxembourg-based Alter Domus in 2017. The firm supported its expansion into one of the industry’s biggest players before selling about half its stake to Cinven last year.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.