The new CEO at 3i Group plc, the FTSE 100 private equity group, certainly isn’t wasting any time on restructuring the business. Last week, 3i Group announced that it was selling part of its stake in 3i Infrastructure. Today, the group announced that it would acquire 3i Quoted Private Equity plc (‘3i QPE’) for cash and shares.
3i Group already holds 44.9% of 3i QPE, and said this morning that it would pay 50 pence per shares and 0.1706 of a new 3i Group share for the remainder of the company. The cash and share offer values 3i QPE at 88 pence per share, or £355.2 million, which represents a 32.6% premium to the closing share price last Friday (19 February 2009). In all, 3i Group will issue 37.6 million shares to shareholders in 3i QPE, representing 8.9% of the enlarged group.
3i Group said it was launching the takeover in response to 3i QPE trading at a significant discount to net asset value. Shareholders representing 64.87% of 3i QPE have already given undertakings to vote in favour of the transaction at a proposed EGM.
3i QEP holds a portfolio of stakes in UK and European companies across a broad spectrum of sectors.