Kevin McCabe, chairman of Scarborough Properties, has made a £200m recommended cash offer to take Teesland private, it was announced this morning
McCabe has offered Teesland shareholders 159.25p a share to buy the 63.7% outstanding Teesland share capital he doesn’t already own via his personal acquisitions vehicle, Scamp Holdings.
The offer price represents a premium of around 38% to the Teesland share price at the close of trading on 20 December and a 34% premium to the asset and fund manager’s all-time trading high of 118.5p a share.
News of the recommended takeover bid follows the conclusion of a strategic review into the business interests of McCabe’s Scamp group, including its stake in Teesland.
Both McCabe and Teesland’s independent directors Alan Murray and Charles Lewis agreed that Scamp represented a ‘material part of Teesland’s business and growth strategy’ and that the offer provided certainty of shareholder value ‘that would not be realisable in the short to medium term.’
McCabe said: ‘The acquisition of Teesland represents an important step in the development of the Scamp Group. Shareholders who acquired shares at the time of the IPO in 2002 have enjoyed share price appreciation of more than 200%.’