Tyman joins London exodus in £790m deal
THE exodus from the London Stock Exchange claimed yet another long established UK company today, deepening fears about low valuations and their implications for the City.
FTSE 250 doors and windows firm Tyman is backing a deal worth £788 million from US building products firm Quanex. The cash-and-stock offer represents a premium of around 40%.
After the deal Tyman “will become a wholly-owned subsidiary of Quanex”, the firms said today.
Tyman, which can trace its roots back to 1838, is based in Queen Anne’s Gate in
Westminster and its shares have been listed in London for 25 years.
The £576 million firm — whose CEO is Rutger Helbing — said today that its directors were unanimous in supporting the bid.
Nicky Hartery, non-executive chair of Tyman, called the deal “transformative and complementary”, adding that it “is the best path to maximising value for Tyman Shareholders, who will be able to realise a meaningful portion of their holding in cash at a significant premium to the prevailing share price.” Mid-cap companies are seen as particularly prone to international offers. Electrical retailer Currys and insurer Direct Line have rejected bids recently.
Richard Hunter, head of markets at Interactive Investor, said: “UK shares on the whole are famously undervalued in comparison to most other developed global and the US tech-heavy markets in particular.
“Given these valuation levels, it would not be surprising to discover that many other overseas corporates are currently running the slide rule over potential UK targets.”
Tyman investors will get 240p in cash for each share they own, plus a portion of new stock in Quanex. There is an alternative, all-stock offer. Both value Tyman’s stock at 400p. The shares surged toward the offer price today, adding 85p to 381p, a rise of almost 30%.
Joshua Mahony at Scope Markets said: “Coming at a time when US markets have been under the microscope given their lofty valuations, the question over whether the City truly values UK companies enough has come back into play.”
Tyman products are used across the central section of London’s Elizabeth line, with its ladder posts providing access to tunnels for engineers. It has 26 manufacturing sites in nine countries.