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Hg Capital Makes Bid for Group NBT

Hg Capital launched a 550 pence per share bid for domain name supplier Group NBT, Reuters reported. The deal, at a 22.5% premium to the company’s closing price Thursday, values Group NBT at about 153 million pounds ($235.8 million).

(Reuters) Shares in Group NBT jump 21 percent as private equity firm Hg Capital launches a 550 pence a share recommended cash offer for the domain name supplier, a 22.5 percent premium to the group’s closing share price on Thursday, and valuating the firm at around 153 million pounds.

At the same time, Group NBT posts full-year results showing a rise in underlying pretax profit to 9.6 million pounds, ahead of Brewin Dophin’s 9.3 million pounds estimate which it had upgraded from 8.8 million pounds following the firm’s full year trading update at the beginning of August.

“We expect the deal to complete at this level, increase our PT to 550p (from 540p) and move to Buy from Add. The price looks sensible given the current macro backdrop and market uncertainty, although we do see greater longer term value given the opportunities for Group NBT,” says Brewin Dolphin in a note.