News

Logistics group TDG has received a bid approach from a hedge fund management firm.

The company says it has received an indicative cash offer at 275 pence per share from Isle of Man-based Laxey Partners.

Laxey, which describes itself as a business which “invests in companies it believes are undervalued,” already owns 22% of the issued share capital of TDG.

Laxey’s preconditions for making a firm offer include completion of satisfactory due diligence, the finalisation of financing arrangements and the recommendation of the board of TDG that TDG shareholders accept the offer.

A statement from TDG says: “Discussions are ongoing and there can be no certainty that the approach will result in a formal offer being made for the company even if the preconditions are waived or satisfied.

“Laxey has reserved the right to offer a lower price if it were to be recommended by the TDG board”.

Laxey chairman Preston Rabl says: “We have been investors in TDG for over a year and are excited about the opportunity to back TDG, its management team and employees.

“The company has a strong customer base, which we value highly, and we support the company’s strategy.

“We believe that our proposal is fair and attractive to shareholders, representing approximately a 29 per cent premium on the one month average and approximately  a 34 per cent premium on the three months average share price”.

Meanwhile, TDG has announced that its operating profit for the year to December 2007 was up 13% to £20.4m on turnover ahead 26% at £669.5m. Pre-tax profit rose 9% to £15.7m.

David Garman, TDG chief executive, says: “I am pleased to report improved results for 2007, with trading a little ahead of our expectations set a year ago and clear signs that our strategy is delivering”.

The 275p/share offer would give TDG a total market capitalisation of around £220m. At midday today TDG shares were trading at 260 pence, an increase of around 15% on the day. However, the shares have traded at up to 320p in the last year.