Takeover Code first reveals new private equity strategies

Author: Gemma Varriale | Published: 5 Oct 2011

The first offer announced under the new UK Takeover Code shows how the rules are pushing private equity firms towards different deal structures.

According to Nick Rees, a London-based Linklaters partner, HgCapital Funds’ agreed take-private offer for Group NBT, a domain name management company, contained significant changes to its terms.

The public to private deal was announced on September 23, making it the first offer announced under the new UK takeover regime.

A striking aspect of the deal was that HgCapital Funds had irrevocable undertakings from 38% of the shareholders.

Rees thinks that this will become a prominent feature...