Ashcourt Rowan’s shares jumped 56% following the approval of Towry’s 270p cash offer, which represents a 60.2% premium to the 168.5p price at market close on 30 January.
Taking into account all shares issued and to be issued, the transaction equates to roughly £97m and will result in a company with assets worth more than £11bn.
The deal is estimated by the firms to complete in the next three months, following regulatory approval. Ashcourt Rowan shareholders accepting will receive the 270p per share, plus an additional five pence per share in loan notes.
Core investors in Ashcourt Rowan have seen a 175% return in just over three years, during which the firm’s value increased from £22m to almost £100m.
Jonathan Polin, chief executive of Ashcourt Rowan, is the only company director to have a holding in the firm, owning 231,645 shares.
Hugh Ward, Ashcourt Rowan chairman, said: “The offer price of 275p per Ashcourt Rowan Share represents a fair price for the business, is a 4.7 times increase in the market capitalisation of the Ashcourt Rowan Group since 1 December 2011 and is testament to the dedication, passion and drive of all our staff.”
