Tomkins agrees to £2.9bn bid
A Canadian consortium has succeeded in its bid to buy car parts maker Tomkins for about £2.9bn, despite one of the company’s main shareholders calling for the bid to be rejected.
Pinafore Acquisitions, a vehicle formed by Onex and the Canada Pension Plan Investment Board for the purpose of acquiring Tomkins, has offered to buy Tomkins for 325 pence per share, following an initial approach on 19 July.
Last week Standard Life Investments, which owns about 2.9 per cent of Tomkins, urged shareholders to reject the consortium’s offer because it undervalued the company.
But Tomkins’ chairman, David Newlands, said in a statement: “The cash offer (from the consortium) provides Tomkins’ shareholders with certain value today and fairly reflects both the value of the group today and its future potential.”