BRCK Group has rebuffed a takeover approach from US private equity firm Atlas Holdings, saying the indicative 65 pence per share cash proposal put to the board in March fundamentally undervalues the business.
Atlas made its first unsolicited, non-binding approach in February, prompting BRCK’s board to engage under NDA to assess whether a recommendable offer might materialise. It didn’t.
When Atlas tabled its 65p proposal on 17 March, the board unanimously rejected it eight days later. BRCK is doing its best to fight off pressure from the US group, which clearly sees more value in building a products and services group than the UK market does.
BRCK has nonetheless left the door slightly ajar, agreeing to share limited further information with Atlas to see whether it is willing to improve its price.
The board has made clear, however, that it won’t be drawn into a full due diligence process unless Atlas comes back with something it would actually be prepared to recommend to shareholders.