Transit Bidco moves forward on cash acquisition of DX Group

(Alliance News) - DX Group PLC on Wednesday gave an update on its potential acquisition by Transit Bidco Ltd, a subsidiary of HIG Capital LLC.

In November, the two companies reached an agreement on the terms of a cash acquisition for the entire issued and to be issued share capital of DX Group, a Slough-based courier and logistics company.

Per this agreement, DX shareholders will be entitled to receive 48.5 pence per share. This will consist of 47.5p in cash and a 1p final dividend for the year ended July 1.

A letter of intent given to Bidco by Lombard Odier Asset Management Ltd related to its 50.1 million shares in DX, approximately 8.3% of the issued share capital of DX on November 15. Lombard on Wednesday said that it had disposed of a further 27.0 million shares, its entire remaining holding of DX shares, which has terminated the earlier letter of intent.

As a result, the total number of shares in DX subject to irrevocable undertakings and letters of intent received by Bidco from other DX shareholders is 236.6 million, approximately 39% of its total issued shared capital. At current valuation, this represents around GBP110.4 million.

DX Group's shares closed up 0.5% at 46.96 pence each in London on Wednesday.

By Hugh Cameron, Alliance News reporter

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