Sanne board to recommend Apex offer

The possible offer represents a premium of 51.6% on the average Sanne share price of 607p over the 90-day period ending on 13 May 2021.

The board of Sanne has indicated to Apex that the possible offer is at a value that the board would recommend, should a firm intention for an offer be made.

JP Morgan Cazenove and Jefferies are acting as financial advisers to Sanne, while Bank of America and Rothschild serve as financial advisers to Apex.

Should Apex make a firm offer, Cinven would have to significantly up its own bid for the fund administrator if it wants to clinch a deal. Negotiations have been taking place for months between Sanne and the PE house; Sanne announced in June that it had received a fifth, 875p-per-share unsolicited takeover approach from Cinven. Sanne went on to secure a Takeover Panel extension requiring Cinven to make a formal offer or step away by 6 August.

Mergermarket reported at the time that Sanne investors were warming up to Cinven's bid, but that offers in excess of 900p per share would remain the preferred sweet spot.

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 GBP 250m, generating a 4x return on investment for Inflexion.

Sanne recently raised GBP 79.5m through a placing of new ordinary shares at 640 pence per share. The sum was partially used to finance the USD 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 GBP 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 GBP 250bn in assets.

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