News Column

Pochin's To Go Private As GBP9.4 Million Offer Has 78% Acceptances

June 12, 2014

Anthony Tshibangu

LONDON (Alliance News) - Construction and development business Pochin's PLC Thursday said it has received a takeover bid by Middlewich, a vehicle of the Cedric Pochin Concert Party, which will value the firm at GBP9.4 million and take the company private.

Pochin's first reported a takeover approach from its Property Development Director James Nicholson and his backers last December, and has repeatedly extended the offer deadline since. The last extension came on May 23 to allow talks to continue for another four weeks.

Nicholson is the grandson of the company's founder Cedric Pochin. He is supported by other family members who are also shareholders. Together, the family members are known as the Cedric Pochin Concert Party.

Under the terms of the deal, Pochin's shareholders will be entitled to receive a cash consideration of 45 pence for each Pochin's share or as an alternative one non-transferable B share in the capital of Middlewich.

The offer prices represents a premium of around 7.1% to the closing price of 42 pence per Pochin's share on Wednesday.

The offer already has received the backing of 78.2% of Pochin's shareholders. The Cedric Pochin Concert Party had already controlled 42.1% of the shares and now have received acceptances from independent directors with shareholdings and from non-executive director Michael Chadwick and Quiros, a company in which Chadwick has an interest.

The company also outlined plans to sell its Midpoint industrial park near Middlewich, Cheshire once it delists. The firm will sell the site for GBP11.5 million to a fund run by Chadwick.

Chief Executive John Moss has indicated that he will retire once the offer becomes unconditional in all respects. Richard Fildes will continue as non-executive chairman.

Commenting on the deal, Nicholson said: "The completion of the offer and the sale of the Midpoint Portfolio will put Pochin's on a more secure financial footing, better positioned to take advantage of improving market conditions."

Pochin's shares were quoted up 2.4% at 43.00 pence Wednesday morning.

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Source: Alliance News