The Spectris board has pulled its support for Advent’s offer after a new bid from KKR. The U.S. investment firm has raised its offer to 40 pounds per share, including cash and dividends. This latest bid values Spectris at 4.7 billion pounds ($6.46 billion), including debt.
This increase comes after a bidding war between KKR and Advent. KKR’s offer is 6.3% higher than Advent’s, which was 37.63 pence per share, valuing Spectris at £4.4 billion. Since Advent’s bid, Spectris shares have surged nearly 88%.
With KKR’s improved offer, the competition for Spectris has intensified. The KKR Spectris acquisition is now set to be one of the biggest deals in the UK this year. Spectris has decided to withdraw its support for Advent’s bid and instead back KKR’s higher offer. KKR had previously made two takeover proposals, with the latest bid at 40 pounds per share. Spectris had rejected KKR’s second offer on June 13.
Advent, which had the right to increase its bid if a competing offer emerged, has not yet responded. Analysts at Stifel believe that the ball is now in Advent’s court. However, after several attempts to raise its offer, there may not be much room for further action.
KKR Spectris Acquisition: What’s Next?
Spectris shares jumped by 5.3%, reaching 40.32 pounds, their highest point in over three and a half years. Since Advent first made its bid on June 9, the stock has surged almost 88%.
KKR’s latest offer includes 39.72 pounds per share in cash for shareholders, along with an interim dividend of 28 pence. Britain’s relatively low valuations and stability have attracted many overseas buyers.
However, KKR has also been involved in another bidding war for Assura, a British healthcare real estate firm. Assura recently chose a higher bid from Primary Health Properties instead of KKR-Stonepeak.
The KKR Spectris Acquisition could be a significant matter, but the future remains uncertain.