TDG, the logistics group that runs J Sainsbury's supply chain, has been acquired by Laxey Partners in a deal that values the business at £203m.
The Isle of Man investment group is offering 250p a share in cash for TDG or 200p a share for TDG and 6.625 shares of LIT, a newly formed acquisition vehicle that will be traded on Aim.
Laxey said the offer represented a 21.5 per cent premium over the average closing price of 205.8p a TDG share for the three months before discussions were announced, on February 27.
Shares in TDG closed up 18¾p at 242½p.
The Takeover Panel, which governs mergers and acquisitions in the UK, had given Laxey until Friday to make a firm offer after TDG appealed in May for a "put up or shut up" ruling.
Laxey, which is keen to gain control of TDG's real estate assets, beat several rival bidders, including Wincanton, which transports goods for Tesco.
TDG's future has been in flux since February when Laxey made an informal approach equivalent to 275p a share, some months after TDG discovered that Laxey had built up a 22 per cent shareholding in the logistics group.
Laxey's informal advance was followed in April by an indicative offer from Wincanton, valued at 290p a share. After Laxey completed due diligence in May, it said it was interested in making a cash offer for TDG but this hinged on securing financing and the TDG board's recommendation.
Laxey is subscribing for up to £90m of LIT shares at 10p each to fund the proposals - depending on the level of acceptances received for the alternative offer - and to provide future working capital to LIT.
The proposals are to be implemented by means of a scheme of arrangement.
Laxey's move highlights the ability of private equity groups to finance deals in the mid-market in spite of the credit squeeze.
But data released by the Centre for Management Buyout Research this week showed that buy-outs in the mid-market - deals between £100m and £500m - had slowed. During the first half of 2008 the total value of deals was just £3bn, compared with £7bn last year.
The Isle of Man investment group is offering 250p a share in cash for TDG or 200p a share for TDG and 6.625 shares of LIT, a newly formed acquisition vehicle that will be traded on Aim.
Laxey said the offer represented a 21.5 per cent premium over the average closing price of 205.8p a TDG share for the three months before discussions were announced, on February 27.
Shares in TDG closed up 18¾p at 242½p.
The Takeover Panel, which governs mergers and acquisitions in the UK, had given Laxey until Friday to make a firm offer after TDG appealed in May for a "put up or shut up" ruling.
Laxey, which is keen to gain control of TDG's real estate assets, beat several rival bidders, including Wincanton, which transports goods for Tesco.
TDG's future has been in flux since February when Laxey made an informal approach equivalent to 275p a share, some months after TDG discovered that Laxey had built up a 22 per cent shareholding in the logistics group.
Laxey's informal advance was followed in April by an indicative offer from Wincanton, valued at 290p a share. After Laxey completed due diligence in May, it said it was interested in making a cash offer for TDG but this hinged on securing financing and the TDG board's recommendation.
Laxey is subscribing for up to £90m of LIT shares at 10p each to fund the proposals - depending on the level of acceptances received for the alternative offer - and to provide future working capital to LIT.
The proposals are to be implemented by means of a scheme of arrangement.
Laxey's move highlights the ability of private equity groups to finance deals in the mid-market in spite of the credit squeeze.
But data released by the Centre for Management Buyout Research this week showed that buy-outs in the mid-market - deals between £100m and £500m - had slowed. During the first half of 2008 the total value of deals was just £3bn, compared with £7bn last year.
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