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Investing.com -- Petershill Partners said on Thursday it intends to delist from the London Stock Exchange and return cash to investors, after the board expressed frustration with the company’s share price and valuation.
The investment group’s shares surged over 33% after the announcement.
Following a strategic review, the group plans to distribute $921 million to shareholders in an effort to boost returns and address market perception.
“Despite the Company’s strong operating and financial performance and these strategic initiatives, the Company’s share price and valuation has, in the view of the Board, not appropriately reflected the quality and underlying value of the Company’s assets, its strong financial performance and attractive growth prospects,” the company said.
Under the proposal, freefloat investors would receive $4.15 per share in cash plus an interim dividend of $0.052, for a total payout of $4.202. That represents a roughly 35% premium to the prior closing price, giving Petershill an overall valuation of $4.5 billion.
The offer implies a takeout multiple of 18.5x last-twelve-month (LTM) earnings through June 30, according to Jefferies.
"After executing multiple value-enhancing strategic initiatives over the last 18 months, PHLL has, in our view, taken the perfectly reasonable decision to seek a delisting of its shares," Jefferies analyst Tom Mills said in a note.
Petershill, part of Goldman Sachs Asset Management, was founded in 2007 and floated in London in September 2021.