Rowland tops bid for London Forfaiting
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Jonathan Rowland yesterday upped the stakes in the bidding battle for the trade finance company, London Forfaiting, by making an all-share offer worth £39m.
Two-thirds of London Forfaiting's shareholders have already given their support to a £31m cash offer made last month from the Maltese bank, FIMBank, but Mr Rowland believes his offer might prove attractive enough to shareholders to win the day. Mr Rowland said: "We have made a share offer to keep as much cash in the business as possible. It also gives investors the potential to upside."
Under Mr Rowland's offer, his investment company Resurge will carry out a reverse takeover of London Forfaiting. It is offering 3.43 shares for every London Forfaiting share, valuing them at 36.87p.
To finance the deal and give capital to the enlarged group, Resurge will launch a share placing of up to £20m. Rowland Capital, Mr Rowland's family trust, yesterday committed to £5m of the placing.
London Forfaiting's board, however, was sceptical of the bid's merits. "Shareholders need to reflect on the financing of the enlarged business and on whether the levels of profitability that Resurge envisages would be capable of sustaining a share price in excess of FIMBank's cash offer of 29.5p," the board said yesterday.
FIMBank attacked Mr Rowland's offer. Margrith Lutschg-Emmenegger, of FIMBank, said the Resurge proposal "lacks credibility and seems to be an attempt by Resurge to get control of Forfaiting's cash".
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments