Ambishus and Dencora prepare to go private

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The Independent Online

Two more public companies are set to go private because they feel unfairly valued by the stock market.

Two more public companies are set to go private because they feel unfairly valued by the stock market.

The Ambishus Pub Company, which listed in May 1998, is being targeted by a management buyout team led by Philip Snook, its non-executive chairman. And Dencora, the commercial property firm, agreed to a £74.6m takeover backed by Cargill, the US commodities giant.

Mr Snook has set up a bid vehicle, called Jodsal, for Ambishus together with Mike Mills, another non-executive director, and Donaldson Lufkin & Jenrette, the US investment bank.

Mr Snook said it was frustrating that despite beating market expectations, Ambishus's share price has "consistently lagged". One analyst said the shares were worth "150p to 160p top whack". Yesterday they closed down 1p at 139p, valuing the group at £11.7m. Mr Snook and Mr Mills together own 11 per cent of the company.

Dencora shares rose 18p to300.5p after the group agreed to a buyout at 307p a share. The price represents a discount to net asset value of 348p, but it is a 65 per cent premium to the185.5p close on 27 March, the day before Dencora said it was in bid talks.

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