Marwyn bid proposal for Tarmac
PRIVATE equity-backed acquisition vehicle Marwyn Materials Ltd is understood to have held talks with Anglo American over a proposed bid to buy a stake in the Tarmac business, according to recent press reports.
Led by industry veterans Peter Tom and Simon Vivian, AIM-listed Marwyn, which seeks to buy UK, European and US building materials companies, is said to have hired HSBC to advise on a possible Tarmac deal.
Sky News reported yesterday that Marwyn had proposed a multi-billion pound transaction under which Anglo would retain a minority shareholding and Marwyn would seek to list Tarmac shares at some point in the future.
Meanwhile, today’s Telegraph states that Marwyn has held a series of meetings with Anglo about either buying out the business in its entirety or a creating structure that would leave Anglo in economic control but inject fresh cash and allow Messrs. Tom and Vivian to take management control.
Anglo bought Tarmac for £1.2 billion in 1999 and have been looking to sell the business for a number of years. The company tried to find a buyer in 2007 but failed to get an acceptable offer. The sale was then put on hold by Anglo due to the global recession. Analysts currently value Tarmac at up to £3.9 billion.
In February this year Anglo sold some of Tarmac’s European operations for a combined total of around £260 million, but it is thought the company is in no hurry to sell the rest of Tarmac.
As UK-based Tarmac’s fortunes are inextricably linked to the UK economy, some industry experts believe that selling even a minority stake would diminish Anglo’s returns when the market recovers.
A spokesperson for Anglo American was reported as saying: ‘We will sell Tarmac at the appropriate time and in an appropriate manner that maximizes value for our shareholders.’
Led by industry veterans Peter Tom and Simon Vivian, AIM-listed Marwyn, which seeks to buy UK, European and US building materials companies, is said to have hired HSBC to advise on a possible Tarmac deal.
Sky News reported yesterday that Marwyn had proposed a multi-billion pound transaction under which Anglo would retain a minority shareholding and Marwyn would seek to list Tarmac shares at some point in the future.
Meanwhile, today’s Telegraph states that Marwyn has held a series of meetings with Anglo about either buying out the business in its entirety or a creating structure that would leave Anglo in economic control but inject fresh cash and allow Messrs. Tom and Vivian to take management control.
Anglo bought Tarmac for £1.2 billion in 1999 and have been looking to sell the business for a number of years. The company tried to find a buyer in 2007 but failed to get an acceptable offer. The sale was then put on hold by Anglo due to the global recession. Analysts currently value Tarmac at up to £3.9 billion.
In February this year Anglo sold some of Tarmac’s European operations for a combined total of around £260 million, but it is thought the company is in no hurry to sell the rest of Tarmac.
As UK-based Tarmac’s fortunes are inextricably linked to the UK economy, some industry experts believe that selling even a minority stake would diminish Anglo’s returns when the market recovers.
A spokesperson for Anglo American was reported as saying: ‘We will sell Tarmac at the appropriate time and in an appropriate manner that maximizes value for our shareholders.’
