TDG has received a £222m cash takeover offer from Laxey Partners. Laxey currently owns about 22% of the share capital of TDG, but has offered 275p per share fro the remaining stock. In a statement Laxey chairman Preston Rabi says: "The company has a strong customer base, which we value highly and we support the company's strategy." TDG would only confirm it had received an offer from
Laxey Partners.
Mark O'Borniek, research director at Analytiqa, says the move is part of the continuing trend of consolidation in the road haulage sector. O'Borniek adds Laxey has a history of aggressive investment tactics. "It moves into companies it sees as under valued and under performing and initiates change. "The statement Laxey has put out supports TDG's strategy, but for a while now the market has perceived TDG as being under valued."
David Pattison, senior partner at Plimsoll Publishing, says: "The offer seems at the lower end of the scale of what the business is worth but its refreshing to see a reasonable offer being made for a change after seeing so many over-inflated deals of late. We would value the company at around £229m. "TDG represents a sound investment- profits are in line with the rest of the industry, however sales growth could be improved in
order to gain market share. The company has assets of £174m which an investor like Laxeys could well look to sell off in order to make some quick cash. If a takeover does go through."
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