Fashion logistics firm Clipper’s shares soar as it confirms takeover bid
Fashion delivery player Clipper saw its shares soar in early trading after confirming a takeover approach from a private equity giant.
Steve Parkin, who founded Clipper in 1992 before taking it public in 2014, is reportedly plotting a £300m offer for the firm alongside US private equity giant Sun Capital Partners.
Read more: Clipper founder to table £300m takeover bid
The expected take-private bid, first reported last night by Sky News, sent Clipper’s share price up almost 22 per cent to 294.5p in early trading.
However, neither party has so far confirmed a figure for any offer, while Clipper did not confirm Parkin’s alleged involvement.
“The board of Clipper Logistics notes the press speculation and confirms it has received a preliminary approach from Sun European Partners, LLP in relation to the potential acquisition of the entire issued, and to be issued, share capital of the Company,” Clipper said in a statement today.
“There can be no certainty that an offer will be made for the Company, nor as to the terms on which any offer will be made.”
Sun Capital Partners now has until 18 December to table a firm offer for Clipper.
Parkin, who is executive chairman of Clipper, holds a stake worth around a third of the firm, which provides delivery services for online retailers like Asos and John Lewis.
With allies’ support he could command 40 per cent of the company’s voting stock in favour of his bid, Sky News reported.
Parkin has reportedly become frustrated by the fall in Clipper’s share price over the last year. Profit slipped by £1m to £17m in the firm’s latest annual results, while its stock has tumbled from a January 2018 high of 485p to yesterday’s close at 242.5p.
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Liberum set a target price of 375p for the FTSE All Share firm this morning, saying: “A £300m valuation for Clipper would imply an April 2020E P/E of around 15x and EV/Ebitda around 8.5x.
“While Clipper has stronger forecast earnings growth than Wincanton, we see potential support for Wincanton’s valuation at the current low levels (March 2020E: P/E 7.3x, EV/Ebitda 6.6x using the most conservative pension adjustments).”
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