Laxey Partners makes TDG approach

Laxey Partners makes TDG approach    United Kingdom logistics firm TDG plc said Wednesday it has received a takeover offer from Isle of Man-based investment group Laxey Partners Ltd., while also reporting a 4 percent rise in annual pre-tax profit.
   Laxey, which already owns about 22 percent of TDG’s issued share capital, has made an indicative offer of '2.75 ($5.47) per share (less TDG’s '8.75 per share dividend declared on Wednesday) for the entire share capital.
   TDG has operations in six countries across Europe and its contract logistics customers include Coca-Cola, Kimberly-Clark, SC Johnson, Kellogg’s and Diageo; together with Johnson Diversey, Corus, BASF, Bayer, PPG and Tesco in the chemicals division.
   “We have been investors in TDG for over a year and are excited about the opportunity to back TDG, its management team and employees,” Laxey Chairman Preston Rabl said in a statement to the London Stock Exchange. “The company has a strong customer base, which we value highly, and we support the company’s strategy. We believe that our proposal is fair and attractive to shareholders, representing approximately a 29 percent premium on the one month average and approximately a 34 percent premium on the three months average share price.”
   TDG had previously said: “Discussions are ongoing and there can be no certainty that the approach will result in a formal offer being made for the company even if the preconditions are waived or satisfied. Laxey has reserved the right to offer a lower price if it were to be recommended by the TDG board.”
   Earlier in the day, TDG reported a 4 percent rise in profit before tax of '15.8 million ($32 million) on a revenue gain of 26 percent to '669.5 million ($1.14 billion).
   David Garman, TDG’s chief executive, said the group’s contract logistics, freight forwarding and supply chain management businesses now account for more than 60 percent of group turnover, up from a little above 40 percent two years ago.
   “I am pleased to report improved results for 2007, with trading a little ahead of our expectations set a year ago and clear signs that our strategy is delivering. We will continue to pursue this strategy — to build on our positions of strength in specialized sectors ' At the same time we will continue to counter ongoing margin pressure through effective account management and aggressive cost management to enhance efficiencies.
   “Overall, we are confident that the group will make further progress in 2008,” Garman said