Harwood Private Equity to buy Frenkel Topping

(Sharecast News) - Frenkel Topping surged on Wednesday after agreeing to be bought by private investment management firm Harwood Private Equity in a deal worth more than £60m. Under the terms of the deal, announced late on Tuesday, Frenkel shareholders will be entitled to receive either 50p per share in cash and one contingent value right, or an alternative offer consisting of 10p in cash and 1 Irwell Holdco Unit.

Frenkel Topping senior non-executive director Tim Linacre said: "Under the executive directors' leadership, Frenkel Topping has become a leader in the clinical negligence and personal injury sectors, achieving strong growth in its key business units and asset management operations.

"The independent directors are confident about the company's long-term prospects but recognise that continued growth requires adequate funding. Over the last few years, the independent directors note that the company's trading challenges have affected the company's performance on the equity capital markets and that listed small-cap companies have found it difficult to attract investment.

"The independent directors also acknowledge that savings arising from being an unlisted business would be better employed by being reinvested in the business. Therefore, considering the certainty provided to scheme shareholders by the cash offer and the opportunity that further investment can be more easily sourced by being part of the Irwell Holdco Group with its supporters, the independent directors are unanimously recommending that scheme shareholders accept the cash offer."

Frenkel Topping is an AIM-listed specialist financial and professional services firm.

At 0910 BST, the shares were 8.8% higher at 49.51p.