Bid pulled

M&G IM withdraws UKML all-cash offer

City of London

M&G Investment Management has withdrawn its proposed all-cash offer for UKML after failing to get board approval.

The company said in a statement that “M&G Investment Management on behalf of one of its managed funds, M&G Specialty Finance Fund confirms it does not intend to make an offer … to acquire UKML due to the absence of board engagement and corresponding access to due diligence.”

It added: “MAGIM is disappointed with the immediate rejection of its increased offer announced on 13 August 2020 by the Board of UKML.

“MAGIM does not believe this allowed all shareholders sufficient time to evaluate the offer and provide feedback to the board, or for the board to proactively canvass this feedback. 

“MAGIM continues to believe that its offer represented the best opportunity for shareholders to exit at an attractive price without delay or the uncertainty from UKML’s Review of Future Strategy announced on 7 August 2020.”

UK Mortgages yesterday rejected a final offer worth 70p per share, valuing the investment trust at £191m.

The new offer was 3p or 4.5% more than M&G’s previous approach.

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