Office group confirms interest
IWG shares rocket on takeover approaches
Offices in 1,000 cities
Shares in serviced office provider International Workplace Group, formerly known as Regus, leapt by more than 30% after it confirmed a takeover approach from private equity firms.
The FTSE 250 firm said Canada’s Onex and Brookfield Asset Management had indicated they may make an offer. Under takeover rules, the pair have until 20 January to make their approach official.
IWG operates offices in about 3,000 locations in more than 1,000 cities. It did not disclose any details about the possible cash offer. The company was valued at £1.8bn at the close on Friday.
The prospect of a deal follows a profit warning in October which saw shares plunge more than 30%.
The company said it expected group operating profit for 2017 to come in at between £160m and £170m, “materially below market expectations”.
This was because of weaker than expected sales.
Shares in IWG at 11am were up 61.6p (30.8%) at 261.8p .