Shares in Tate & Lyle have surged by over 12% following speculation of a takeover bid from an American private equity group.
The FTSE 250-listed ingredients company is reportedly in the crosshairs of US-based Advent International, with the Financial Times disclosing the preliminary bid details, as reported by .
At the moment, Advent, which ranks as the world's eighth-largest private equity firm, is at a preliminary stage of bid formulation, and there's no assurance of a definitive offer being made.
The value of Advent's proposal has not been determined but is expected to surpass Tate & Lyle's market valuation of £2.8 billion, insiders revealed to the FT.
Tate & Lyle's share price has increased significantly following the news, boosting its market capitalisation to £3.2 billion.
Advent has formerly pursued British aerospace manufacturer Cobham, resulting in a high-profile takeover battle involving the Competition & Markets Authority over national security concerns; the acquisition ultimately prevailed.
This development comes shortly after Tate & Lyle sought to leverage the City regulators revised listing regulations, bypassing a shareholder vote for its purchase of the American speciality ingredients firm CP Kelco.
These revised regulations allow companies to pursue a broader range of transactions without requiring shareholder approval, which encompasses "significant or related party transactions".
Tate & Lyle has entered into an agreement to acquire CP Kelco from parent company JM Huber Corporation for $1.8 billion (£1.4 billion), which also includes the takeover of its operations across the United States, China, and Denmark.
The company anticipates the deal to be finalised before the year concludes.
Advent and Tate & Lyle chose not to comment.
