:Automotive components supplier TI Fluid has agreed to a 1.04 billion pound ($1.32 billion) takeover by Canada’s ABC Technologies, expanding the combined group’s reach across the Americas, Europe, and Asia, the British company said on Friday.
Shares in TI Fluid, which have surged more than 45 per cent since ABC Technologies’ first takeover proposal in August, climbed 2 per cent to 193 pence in early trade.
London-listed TI, which has operations in 27 countries including Canada, the United States and Mexico, , counts automotive original equipment manufacturers as primary customers, providing thermal solutions and fluid systems for vehicle manufacturers across the world.
Apollo Global-owned ABC Technologies’ offer at 200 pence per share represents a 53.4 per cent premium to TI Fluid’s 130.4 pence closing share price on Aug. 21 before ABC’s initial proposal.
Toronto-based ABC Technologies is a global manufacturer and supplier of components to the global automotive industry.
The deal implies an enterprise value of about 1.83 billion pounds for TI Fluid, which raised guidance in August for full-year adjusted operating profit margin expectation of more than 7.6 per cent, up from 7.4 per cent previously.
The company’s board said it intends to recommend that shareholders vote in favour of the deal.
($1 = 0.7860 pounds)
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