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Takeover deals continue to gather pace

by LLB Reporter
17th Apr 23 9:39 am

Takeovers seem to be falling into two camps at present. They’re either being driven by cheap valuations which means predators can strike a bargain, particularly if foreign exchange rates are working in their favour. Or deals are happening because companies have hit a wall and need fresh thinking from a new owner to create value.

The latest wave of bids and offers cover both categories, with plenty of action on both the UK stock market and overseas exchanges.

AJ Bell’s Russ Mould said: “Angry Birds video games maker Rovio has been looking for a buyer for some time after failing to repeat its success with new intellectual property. Sega Sammy has already struck gold with Sonic the Hedgehog and now fancies its chances with Rovio’s flock of assets.

“A shared fascination with animals doesn’t guarantee future success. Sega might be able to further milk Rovio’s existing intellectual property but very few titles can be regurgitated into successful new games and spin-off activities such as films and merchandise ad infinitum.

“Payments group Network International has confirmed details of its takeover proposal from CVC and indicates the price could be right. Oil services expert John Wood also indicates there could be merit in its latest takeover proposal from Apollo and is opening up its books to the suitor so the latter can undertake proper due diligence.

“Everything is up for sale at the right price and given the uncertain economic outlook it seems that boards are minded to support takeovers as long as shareholders are not being messed about by unrealistically low offers. That situation might be a lot different in a stronger economic environment.”

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