TDG rises on Bidco purchase agreement

By Hsu Chuang Khoo  |   2008-7-5  |     NEWSPAPER EDITION

BRITISH logistics and supply chain firm TDG plc agreed yesterday to be bought by Bidco, a company formed by hedge fund Laxey Partners, for 203 million pounds (US$403 million), boosting TDG's shares.

Under a larger plan, Bidco will go on to become a private equity investor in undervalued small and mid-size firms such as TDG, and will apply to be listed on London's junior AIM market after October.

Laxey's offer of 250 pence in cash for each TDG share is lower than its initial bid of 275 pence in February and comes after rival bidder, British supply chain group Wincanton, pulled withdrew last month.

While TDG said the offer was an 11-percent premium over its closing price the day before talks were announced, they are some way off its 320-pence high in May.

Under a related proposal, Bidco will also buy all the shares in The Laxey Investment Trust plc.

TDG shares rose 9 percent to 243.25 pence while TLIT surged 22 percent to 111 pence yesterday.