Sanne rejects Cinven’s £1.35bn offer
14 May 2021 UK
Image: heyengel/adobe.stock.com
Sanne, a provider of alternative asset and corporate administration services, has rejected a proposal of £1.35 billion from Cinven, a global private equity firm, to buy out the firm.
This follows Cinven’s proposal made on 4 May to Sanne regarding a possible cash offer for Sanne at 830 pence per share which could be made by a company to be incorporated by the Cinven funds.
Additionally, eligible Sanne shareholders would also retain the right to receive the final dividend of 9.9 pence per share declared on 19 March.
Cinven must announce its intention to make an offer by 11 June or state that it does not intend to make an offer.
The deadline can be extended with the consent of the Panel on Takeovers and Mergers.
In December last year, Sanne entered into an agreement to acquire Private Equity Administrators (PEA), a private equity fund administrator.
The acquisition was intended to provide an opportunity to increase the scale of Sanne’s Guernsey operations with the potential to drive cost synergies going forward.
The fund administrator also became the first successful applicant to secure a specialised depositary licence from the Central Bank of Ireland.
The licence marked a significant milestone for its Irish business as the licence will allow it to further enhance its capabilities in Ireland and its multi-jurisdictional proposition for alternative fund managers, according to Sanne.
Speaking on its financial performance in 2020, Sanne said it was “resilient...with continued investment in organic initiatives and our technology strategy”.
The fund administrator noted that the business continues to enhance its global footprint and expand its product expertise.
Last year, Sanne totalled a net revenue of £169.7 million with an underlying operating profit of £48.0 million.
It also gained £22.5 million in new business wins throughout 2020.
This follows Cinven’s proposal made on 4 May to Sanne regarding a possible cash offer for Sanne at 830 pence per share which could be made by a company to be incorporated by the Cinven funds.
Additionally, eligible Sanne shareholders would also retain the right to receive the final dividend of 9.9 pence per share declared on 19 March.
Cinven must announce its intention to make an offer by 11 June or state that it does not intend to make an offer.
The deadline can be extended with the consent of the Panel on Takeovers and Mergers.
In December last year, Sanne entered into an agreement to acquire Private Equity Administrators (PEA), a private equity fund administrator.
The acquisition was intended to provide an opportunity to increase the scale of Sanne’s Guernsey operations with the potential to drive cost synergies going forward.
The fund administrator also became the first successful applicant to secure a specialised depositary licence from the Central Bank of Ireland.
The licence marked a significant milestone for its Irish business as the licence will allow it to further enhance its capabilities in Ireland and its multi-jurisdictional proposition for alternative fund managers, according to Sanne.
Speaking on its financial performance in 2020, Sanne said it was “resilient...with continued investment in organic initiatives and our technology strategy”.
The fund administrator noted that the business continues to enhance its global footprint and expand its product expertise.
Last year, Sanne totalled a net revenue of £169.7 million with an underlying operating profit of £48.0 million.
It also gained £22.5 million in new business wins throughout 2020.
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