Hogg Robinson (HRG) share price rockets 50 per cent after agreeing takeover by American Express (Amex) travel firm
Shares in FTSE 250 travel agent Hogg Robinson rocketed this morning after agreeing terms for a £400m takeover by an American Express travel firm.
Separately, Hogg Robinson said it had inked a £141m deal with Visa to sell payments software subsidiary Fraedom.
American Express Global Business Travel – a company owned by Amex and an investment group led by Centares – is offering between 110p and 120p for Hogg Robinson. Shares closed yesterday evening at 78p each, they are currently at 116p.
The Amex offer values Hogg Robinson at between £376m and £411m – depending on the timing of the Fraedom disposal.
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“Today’s deal is attractive for Hogg Robinson Group’s shareholders and an exciting next step for Fraedom,” said Hogg Robinson chief operating officer William Brindle.
“This combination will mean that Fraedom’s employees and their clients will benefit from Visa’s reach and deep knowledge of the digital payments industry. Under the company’s leadership, Fraedom has become a leading software-as-a-service technology company and we wish them further success under new ownership.”
The Fraedom sale is subject to shareholder approval and Hogg Robinson said it had already received undertakings in its favour from 46.9 per cent of investors.
Read more: Balfour appoints Hogg Robinson finance boss to replace Magrath