Private equity has swooped on another British company battered by the pandemic.
US-based Providence Equity lodged a 105p-a-share offer for London-listed Hyve Group, valuing the events organiser behind exhibitions and conferences such as fashion trade show Pure London at £306million.
It suggests interest in British firms from overseas suitors remains strong in the wake of Covid, when companies were bought out in what was dubbed ‘pandemic plundering’.
US-based Providence Equity lodged a 105p-a-share offer for London-listed Hyve Group, valuing the events organiser at £306m
Shares in Hyve jumped 16.3 per cent, or 14p, to 100p – but are still more than 80 per cent down on pre-Covid levels as the industry struggles to recover.
Hyve, formerly International Trade Exhibitions, revealed it received two proposals from Providence.
The first regarded a possible offer at 101p a share before this was raised to 105p. ‘The board of Hyve is considering its position with respect to the proposal and a further announcement will be made in due course,’ the company said in a statement.
Under City takeover rules, Providence must submit a bid by March 21 or walk away.
Providence’s portfolio includes a majority stake in New York-listed software firm DoubleVerify and control of Spanish football giant Real Madrid’s franchise arm.
Hyve shares have failed to recover since the £900billion events industry was brought to a halt at the start of the pandemic.
But company revenues in the 12 months to September 2022 were at 90 per cent of pre-Covid levels, with the second half of the year running at 110 per cent.
With the business recovering, but not its share price, Investec analyst Alastair Reid said Providence’s offer was ‘too low’ and added the private equity firm was ‘potentially being opportunistic’.
Hyve was founded in 1991 by the Shashoua family, who were looking to capitalise on former Soviet Union states transitioning to market economies.
Almost all its exhibitions now take place across advanced economies, after it sold off some global operations over the last year.
Takeover interest in UK firms picked up during Covid as bidders looked to take advantage of depressed price tags.
G4S, the AA, Asda, Morrisons and Ultra Electronics are among firms bought in recent years.
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