In a twist that’s rattling London’s AIM market, Anexo Group PLC, the U.K.-based provider of motor accident credit hire and legal services, has accepted a controversial £70.79 million ($95.4 million) acquisition offer from Dbay Advisors Ltd. and the company’s founders. The agreement, announced Tuesday, is already stirring debate among shareholders and market analysts.
A Premium—or a Discount?
The suitors—Dbay Advisors, barrister Alan Sellers, and solicitor Samantha Moss—have offered 60 pence per share via non-convertible loan notes through a jointly controlled entity, Alabama Bidco Ltd. While this bid reflects a 17.6% premium to Anexo’s share price of 51 pence on April 17 (the day before the offer period began), it’s a notable 25.4% discount from Monday’s closing price of 68.4 pence. Following the news, Anexo shares tumbled to 53 pence on Tuesday afternoon.
The use of non-convertible loan notes—which lack the flexibility of equity conversion—has raised eyebrows. These instruments entitle lenders to repayment with interest, but strip away the potential upside of ownership in a recovering or thriving business.
