Hyve Group reveals £306m takeover bid from US-based Providence Equity

Shares of Hyve Group rose more than 15 percent on Tuesday after the London-listed event company revealed a takeover plan from US private equity firm Providence Equity.

Providence, based in Rhode Island and focused on investments in media, communications, education and technology, has bid 105 pence per share for Hyve, the company told investors.

The offer, which Hyve values ​​at £306 million, follows an undisclosed offer of 101 pence per share for the group.

Hyve Group shares were up 15.9 percent to 99.7 pence and nearing close, bringing the 2023 gain to 37 percent.

The group said: ‘Following the recent movement in Hyve’s share price, Hyve’s board confirms that it has received a preliminary and conditional approach from Providence Equity regarding a possible cash offer for Hyve of 105 pence per Hyve share. .

‘The board of Hyve is considering the proposal and will be announced in due course.’

City rules state that Providence must announce a firm intent to bid on Hyve by 5 p.m. on March 21, or walk away.

Hyve saw annual revenue rise by more than £100m last year, after being hammered by Covid-19 restrictions last year.

The company, which was shut down last year for operations in Turkey, Indonesia and Russia, is still getting a boost from the return of Chinese trade following the full reopening of its economy.

Hyve was founded in 1991 as International Trade Exhibitions by the Shashoua family, who wanted to capitalize on the transition of the former Soviet Union to a market economy, with the first event being a motor show in Moscow.

The group’s share price remains 11.2 percent lower than at this time last year and 82.2 percent below its valuation five years ago.