TI Fluid Systems to exit London Stock Exchange in £1bn deal

TI Fluid Systems is to become the latest company to exit the London Stock Exchange in a deal that takes the value of stocks leaving the market this year to more than £50 billion.
The FTSE 250 engineer has recommended that shareholders vote in favour of a £1 billion acquisition of the company by ABC Technologies, a Canadian rival backed by Apollo Global Management.
The takeover means that the value of companies leaving the London stock market has hit £52 billion in the year so far, according to research by the investment bank Peel Hunt.
TI Fluid Systems is a manufacturer of fluid-carrying systems for vehicles that was floated at 255p-per-share by Bank Capital in 2017. The group’s board has supported a 200p-per-share offer for the business from ABC, which represents a 47.3 per cent premium to its closing share price on September 12, the day before its suitor’s initial interest was revealed.
Terry Campbell, president and chief executive of ABC, said: “This transaction is a transformative strategic opportunity, which unlocks value for all of our stakeholders and provides a platform for further growth.”
The City has been reeling from a flurry of takeover activity in recent weeks: TT Electronics, Aquis, Centamin, Renewi, Loungers and Direct Line have all been subject to bids. The surge in acquisitions comes after markets entered a prolonged period of inactivity when interest rate rises put dealmaking on hold.
Analysts have pointed out that TI Fluid Systems’ revenues could come under pressure from problems at Stellantis, its largest customer in the US, and that shareholders may benefit from securing a “route to realising shareholder value” with ABC’s offer. TI Fluid Systems’ shares rose by 1.6 per cent, or 3p, to close at 192¼p.
Tim Cobbold, chairman of TI Fluid Systems, said: “TI Fluid Systems is a market-leading business, renowned for its exceptional people, innovative products, blue-chip customer base and long-term growth potential.
“The TI Fluid Systems board believes that the offer represents an attractive premium and provides shareholders with the certainty of a cash consideration that reflects TI Fluid Systems’ fundamental strengths and opportunities, while also acknowledging the wider industry uncertainties.”