TPG in £508m bid for GlobeOp

Following previous reports of GlobeOp management entering negotiations with Advent and TPG, the latter has launched a 435 pence per share bid for the company.

The cash offer values GlobeOp at £508m, and represents a 59.3% premium to the volume-weighted average over the last three months prior to the initial announcement. Notably, the bid outperformed market expectations by 22.5% to the previous closing price, causing its share price to surge from arbitrage.

TPG's valuation of the company is considerably higher than GlobeOp's market cap in late 2011, reflecting management's belief that the company was "significantly undervalued" on the stock exchange.

The offer document states that 43.85% of shareholders have irrevocably undertaken to accept the offer.

Evercore Partners are acting as corporate finance advisers to management. TPG has hired Cleary Gottlieb for financing, regulation, and competition matters, and Linklaters for legal advice.

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• Topics
• UK / Ireland
• TPG Capital
• LSE