London-listed takeover targets hot up as Sureserve snapped up

Sureserve revealed it had accepted a buyout offer, while FTSE 350-listed Network International said it had received another takeover bid.

Two London-listed businesses have revealed takeover offers as they join a growing list of firms looking to leave the public markets (Dominic Lipinski/ PA) (PA Archive)

Two London-listed businesses have revealed takeover offers as they join a growing list of firms looking to leave the public markets.

Payment provider Network International said it received a potential takeover offer from a private equity firm that values the business at more than £2 billion.

The proposal from Brookfield Asset Management of 400p per share is “highly preliminary” and “non-binding”, the company stressed.

The possible buyout trumps a separate joint proposal earlier this week from CVC Advisers and Francisco Partners of 387p per share in Network International, as the race to snap up the multinational business hots up.

The FTSE 350-listed company is the leading payments processer across the Middle East, including the United Arab Emirates, Jordan and Saudi Arabia, and more than 40 countries in Africa.

Headquartered in Dubai, the company said it processed more than 42 billion US dollars (£34 billion) in 2021 for more than 150,000 merchants.

It listed on the London Stock Exchange in 2019 at 435p per share, which means both the recent offers fall short of its initial valuation.

Network International said it was evaluating the proposal from Brookfield, having previously stated it was “minded to recommend” the bid from CVC Advisers and Francisco Partners.

“There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made”, the group told investors.

Meanwhile, energy services provider Sureserve Group announced it had accepted an offer from private equity group Cap10 for 125p per share, which values it as around £214 million.

The AIM-listed firm provides energy to social housing in the UK and said its key role is to support landlords, local authorities and public sector bodies to improve the energy efficiency of their estates.

It is particularly focused on addressing issues related to fuel poverty, it said.

Shares in Sureserve surged by more than a third on Friday morning following the takeover news.

And Network International’s share price shot up by more than a tenth in early trading.

The firm has seen its share price climb by nearly 60% over the past year, although it has still not rebounded to the highs reached in early 2020.