Storage specialist Mentmore was today considering a takeover approach thought to have come from financier Guy Hands.
London-based Mentmore, which has 53 centres providing storage for individuals and small and medium sized businesses, confirmed in a Stock Exchange statement that it had received interest from an unnamed party.
The approach is thought to have come from Terra Firma, the private equity vehicle headed by Hands.
According to the Sunday Times, Terra Firma has been granted an exclusivity period to carry out due diligence on Mentmore, which was valued at £154m prior to today.
Shares rose 18% to 100p following the announcement.
Hands gained his reputation as one of the City’s top dealmakers while head of the principal finance unit at Nomura International, the Japanese bank.
Investments included a pub estate and a television rental business.
He left last year to set up Terra Firma with the intention of raising a €2bn (£1.4bn) fund.
Mentmore is seen as one of Europe’s leading storage groups with more than 2.8m sq ft of space under management.
Earlier this month, the company announced plans to sell its stake in Iron Mountain, a records and data management business providing services across Europe.
The move is expected to raise around £82.5m.
In its statement, Mentmore said: “The board of Mentmore confirms that it has received an approach regarding the possible acquisition of the company.
“There can be no certainty that this approach will lead to an offer being made for the company. Shareholders will be informed of developments as appropriate.”
References: EGi News 22/12/03
