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08 Mar 2021 | 09:28

Arrow signals intent to accept £545m bid proposal

(Sharecast News) - Arrow Global said was it was likely to accept an improved bid proposal from TDR Capital valuing the company at about £545m. TDR has proposed paying 307.5p per share in cash for the distressed credit manager, Arrow said. The approach is an improvement on the 305p per share proposal the private equity group suggested on 5 February, which was its fourth attempt to agree a deal.

The latest approach was made on 22 February. Arrow said it was in talks about details of the proposed deal and that the deadline for TDR to make a firm offer had been extended to 23 March. The company's shares ros 9.4% to 295.50p at 09:52 GMT.

"The board of Arrow Global has confirmed to TDR Capital that it is minded to recommend a firm offer for Arrow Global at the price set out in the revised proposal, subject to the agreement of terms relating to the revised proposal," Arrow said.

TDR made its first approach on 2 December with a proposal priced at 250p a share. When the firm increased its proposed offer to 305p Arrow's founder and chief investment officer Zachary Lewy said he would vote for the deal.

Private equity firms are on the lookout for deals in the UK where the stock market has not kept up with gains made in the US and other countries, leaving potential for acquisitions that could perform well as the economy recovers. Aggreko agreed on 5 March to sell itself to TDR and I Squared Capital Advisors for £2.3bn.
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