Mowlem admits takeover approach
Mowlem, the construction group chosen to build a new stand at Twickenham, is the latest company to be at the centre of takeover talks.
The Middlesex-based company, which has added support services to its remit, admitted yesterday it had received an approach for the business, although it declined to reveal the identity of its suitor.
Shares in Mowlem have been rising as speculation increased that it could be taken over.
In a statement, the board said it had appointed N M Rothschild to advise it.“ The board notes the recent movement in its share price and confirms that it has received a preliminary approach which may or may not lead to an offer for Mowlem.
The board wishes to stress that discussions are at a very early stage and there can be no certainty that this approach will lead to an offer.”
Experts pointed to the attraction of the group’s PFI division, which analysts estimate to be worth around £100m.
Some suggest the approach could have come from an overseas party keen to gain a foothold in the potentially lucrative sector. The other two divisions are construction and services.
Mowlem reported pre-tax losses of £73.4m on 30 September for the six months to 30 June as a result of write downs in the value of contacts carried in the balance sheet.
It has won some high-profile jobs this year. It has been chosen by the Highways Agency to complete a £429m project to widen a section of the M1 near Luton.
It has also been picked by the Rugby Football Union to increase Twickenham’s capacity to 82,000 with a new stand.
It appointed group chief executive Simon Vivian in January and finance director Paul Mainwaring in May to help the company restructure. It has an order book of around £2.3bn.