Sanne rejects Cinven's £1.3bn offer

Cinven presented its proposal of 830 pence per share to Sanne earlier this month. The GP has until 11 June to make the firm another offer or walk away.

The proposal represents a 37.6% premium to Sanne's share closing price of 603 pence on Thursday. The firm has a market cap of £978m based on Thursday's closing price.

Sanne published a statement confirming that it had received three unsolicited, non-binding, indicative proposals from Cinven in recent months. The latest non-binding proposal was received on 4 May 2021 regarding a possible all-cash offer at a price of 830 pence per share.

Sanne's board said that "the proposal significantly undervalues the company and does not merit further engagement". It also underlined that "the proposal was opportunistic and not reflective of the group's ability to deliver strong operating and financial performance as the macroeconomic environment continues to recover, or its longer-term prospects."

Sanne has previously been under private equity ownership. It was acquired by Inflexion in October 2012 and subsequently listed on the London Stock Exchange in March 2015 with a market capitalisation of £250m, generating a 4.0x return on investment for Inflexion.

Sanne recently raised £79.5m through a placing of new ordinary shares at 640 pence per share. The sum was partially used to finance the $32m acquisition of Strait Capital Company, a North American fund administration business.

Last year, Sanne sold its Jersey-based private client business to JTC. According to the deal, Sanne will receive up to £12m in cash upon completion of the transaction.

Sanne provides administration, reporting and financial services to alternative asset managers, financial institutions, family offices and corporates. It serves 1,750 clients and administers 7,800 structures and funds with £250bn in assets.

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• Topics
• GPs
• UK / Ireland
• Cinven
• Sanne