- Tyman to become the latest firm to delist after US takeover
Tyman saw its shares skyrocket on Monday after the London-listed doors and windows supplier revealed a takeover deal agreed with US-based Quanex Building Products.
The cash and share deal, which values the British firm at around £788million, will see Tyman become the latest to delist from the London Stock Exchange after being bought out by a US rival.
Tyman’s takeover by Texas-based Quanex will also see the closure of its head office in London, but the group said it would not shut down any UK manufacturing facilities.
The deal will be a cash and share deal that values the British firm at around £788million.
Tyman shares jumped by 30.41 per cent to 386p by early afternoon trading.
Upon completion, Tyman will be a wholly-owned unit of Quanex, which is listed on the New York Stock Exchange.
The deal will see Tyman shareholders get 240p in cash and 0.05715 of new Quanex shares for each Tyman share held.
The offer is a premium of around 35.1 per cent on Tyman’s Friday closing price of 296p.
An alternative offer was also presented which would see Tyman shareholders receive shares in Quanex at a ratio of 0.14288 of a new Quanex share to every one Tyman share held.
The takeover comes at a time when housebuilders in the United States have decided to cut price due to higher mortgage costs, which has created problems for first time buyers.
Nicky Hartery, non-executive chair of Tyman, said: ‘This transformative and complementary transaction will strengthen the enlarged business for the benefit of all our customers, employees and other stakeholders.
‘In the context of a rapidly evolving North American marketplace, our board ultimately determined that this transaction is the best path to maximising value for Tyman shareholders, who will be able to realise a meaningful portion of their holding in cash at a significant premium to the prevailing share price while also participating in the future upside of the enlarged group.’
Commenting on the potential deal, which already has the support of 16.4 per cent Tyman stakeholder Teleios, analysts at Peel Hunt said there may be shareholder opposition.
They say: ‘While the headline premium will no doubt be attractive to some shareholders, we would not be surprised to see some holding out for a better offer.’