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Mitie Agrees £366m Takeover of Lord Ashcroft’s Marlowe

Investor backing is required by July 2 for Mitie’s cash-and-shares bid that prices Marlowe at 466p per share; promises £30m of annual cost synergies.

Lord Ashcroft is chairman of Marlow and is its biggest shareholder with a stake of 18.9 per cent
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The deal adds to Lord Ashcroft’s substantial wealth following the £300 million he collected when Impellam, his recruitment business, was sold in 2023

Overview

  • Mitie’s £366m offer consists of 290p in cash plus 1.1 new Mitie shares for each Marlowe share, valuing the stock at 466p compared with its 406p pre-announcement price.
  • Marlowe’s board has unanimously recommended the transaction, making shareholder approval the key remaining condition of the deal.
  • Lord Ashcroft, Marlowe’s interim non-executive chairman and largest shareholder with an 18.9% stake, is poised to receive about £67m.
  • The acquisition is expected to generate around £30m of annual cost synergies by integrating Marlowe’s compliance and risk management services into Mitie’s operations.
  • Under UK takeover regulations, Mitie must lodge a firm offer by July 2 or face a six-month moratorium on further takeover talks.