Tomkin's opens international business negotiations with Onex
UK firm receives £2.86 billion bid from Onex
20 July 2010
Tomkins has held international business negotiations with
Canadian private equity firm Onex and the Canada Pension Plan
Investment Board.
The UK car-parts manufacturer confirmed that it has received a
cash bid of £2.86 billion, although no formal offer has been
made.
Tomkins market value profited from the possible takeover as
shares rose by over 30 per cent to hit a four-year high of 314
pence, which is still below the proposed 325p per share offer.
Increased demand for car components has led to a growth in sales
at Tomkins, with the company reporting operating profit of $290
million (£191 million) in the first half of 2010.
It said: "The increase in sales volumes of approximately 23 per
cent year-on-year was driven by a combination of restocking and
strengthening demand, offset to some extent by continued declines
in the US construction markets."
Profits are expected to fall throughout the rest of the year as
the firm expects the continued economic uncertainty to hit
sales.