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IWG extends deadline for final offers
Posted on Friday, 08 June 2018 14:17
IWG, the UK-based serviced office provider, has granted Starwood Capital European Operations and TDR Capital an extended period to either submit an offer or announce their intention to not pursue a proposal as talks with the two potential investors are ongoing. The company has announced it received separate bids from the firms in May. IWG had originally set 8th June 2018 as a deadline for an offer but as discussions remain ongoing it has decided to expand this timeframe to 29th June 2018. It has noted a further announcement will be made as and when appropriate. Prime Opportunities Investment Group also approached IWG regarding a cash offer for 100.0 per cent of the business. The potential target, which offers office and workspace letting services, had a market capitalisation of GBP 2.78 billion at the time. Prime’s original bid has been rejected by IWG and the company now has until 26th June to make a firm offer. However, Reuters reported that the company has said it is confident it will not table another bid. In addition, Lone Star, a private equity firm that has also expressed interest in IWG, has also noted it has no intention to make a final offer. Last year, Brookfield Asset Management and Onex Corporation both entered into due diligence to acquire the Jersey-based business; however, those deals were withdrawn earlier this year. IWG claims to be the leader in its field and provides workspaces for more than 2.50 million people and their businesses, spanning start-ups, small- and medium-sized enterprises and large multinationals. The company has over 3,300 locations in 1,000 towns and cities across some 110 countries worldwide. Founded in 1989, IWG generated net capital expenditure of GBP 76.10 million in the opening three months of 2018. Shares in the firm closed up 3.6 per cent to GBP 317.60 on 7th June, valuing the business at GBP 2.86 billion. © Zephus Ltd