GlobeOp Financial Services is in takeover talks with private equity firms Advent International and TPG Capital regarding possible offers as the company undertakes a strategic review in order to boost its share price.
The hedge fund administrator, which has $173 billion in assets under administration, said it was performing well and it was confident about future prospects as described in its pre-close trading update of Dec. 21 2011. In light of its continued strong growth, the companys share price significantly undervalues its future prospects, it said. Accordingly, GlobeOp has appointed Evercore Partners to advise on this review to ensure that long-term value for shareholders is maximized.
The company said the discussions are a preliminary stage and there can be no certainty that an offer will be made.
Commenting, GlobeOps chairman Ed Nicoll, said: “GlobeOp is performing extremely well and we are confident of continuing the strong growth of the business under our current ownership structure. Nevertheless, the Board felt it right to explore options which could enhance the interests of clients, employees and shareholders.”
In accordance with the City of London Takeover code, both Advent International and TPG Capital must announce whether or not they intend to make an offer by Feb. 2 2012. This deadline will only be extended at the companys request with the consent of the Takeover Panel.
(JDC)