Private equity house launches new offer for Towergate shares after completing initial tender
New Towergate shareholder Madison Dearborn Partners is now looking to buy the 4.7% of Towergate that is not already owned by itself or the current core group of shareholders.
The Chicago-based private equity house announced last week that in its tender offer to buy up to 23% of Towergate, it had successfully bought 17.9% of the company.
This means that Madison Dearborn, along with biggest shareholder HPS Investment Partners, KKR and Bain Capital, now own 95.3% of Towergate, and Madison Dearborn is Towergate’s second largest shareholder after HPS.
But Madison Dearborn has also made a new “mandatory offer” for the outstanding shares, which will close on 9 December.
Commenting on the completion of the first tender offer, Towergate chief executive David Ross said: “The power our business takes from a strong, long term and supportive investor base cannot be underestimated.
“With this in mind, I am proud that Madison Dearborn Partners has become our second largest shareholder following the successful close of the offer.
“We look forward to working with them as we continue to deliver upon our fix agenda and plan for growth.”
Towergate did not comment on Madison Dearborn’s attempts to mop up the remaining 4.7% of the company, saying it wished to remain neutral and was not in a position to express a view.