Hong Kong-based Pyrrho Investments has made a £65m bid for serviced office provider MWB Business Exchange, going head-to-head with rival bidder Regus.
Pyrrho which already owns 16.7% in the business, this morning said it had made the bid through its subsidiary Gallant Victor Holdings, to buy the remainder of the company.
As part of the deal, MWB Business Exchange shareholders would receive 100p per ordinary share of 0.1p each.
The bid is almost 63% higher than the £40m offer made by Regus subsidiary Marley Acquisitions in December 2012.
Pyrrho is concerned that a combination of MWB with Regus could result in a substantial lessening of competition in relation to the provision of serviced offices in London, and a complaint has been lodged with the Office of Fair Trading, requesting it to investigate the proposed merger.
Anson Chan, director of Gallant Victor Holdings, said: “The substantial financial resources available to Pyrrho, its low cost of capital and international business expertise have enabled us to make this offer, which is at a strategic premium of 62.4% over the Regus proposal. If Regus decides to counter our bid, the much higher cost of acquisition which Regus will have to pay may be a significant surprise to Regus shareholders and market commentators alike.”
Regus now has four days to come back with a counter offer.
joanna.bourke@estatesgazette.com
