Billionaire Teddy Sagi’s privately held LabTech Investments Ltd, owns 71% of London-listed Market Tech, has agreed to buy the 29% remaining stake it doesn’t already own at a 30% premium. The company said Friday
LabTech will buy the remaining stake for 188 pence per share in cash, valuing Market Tech at $1.14 billion. Sagi will pay about £264 million for the minority shareholdings, and a further £100 million to repay the company bonds, or about $500 million in total.
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Teddy Sagi is delisting Market Tech Holdings Ltd., with a view to turning it into a private company wholly owned by him.
Market Tech was floated on the London Stock Exchange in late 2014 at a valuation of £750 million. Its main assets are properties in and around the Camden area of north London, and retailing technology companies.
LabTech was founded in 2014. Its main assets are its shareholding in Market Tech and a portfolio of properties in Holborn, Central London, which it acquired in late 2016 for approximately £300 million.
LabTech is wholly owned by GHT, a trust of which the ultimate and sole beneficiary is Teddy Sagi. The company intends to finance the Offer exclusively by means of its existing financial resources.
Commenting on the Offer, Robert Akkerman of LabTech, said: “We continue to believe in Market Tech’s potential and believe this offer provides an attractive and certain value for the current Market Tech independent shareholders.”
Neil Sachdev, Chairman of Market Tech, said: “The Independent Directors have reviewed this cash offer in light of the potential of the business whilst also considering the impact of both uncertain market conditions and the current rating for listed UK real estate companies with large scale long term developments. Against this background, the Independent Directors believe the cash offer provides shareholders with a certain opportunity to realise future potential value today, at an attractive premium to the current share price.”
Market Tech’s board recommends accepting the offer. It will be voted in two weeks’ time. It requires the support of half the minority shareholders.