Promethean exploring £164m bid for London Scottish

Promethean Investments, the AIM-listed investment vehicle of Sir Peter Burt, has approached London Scottish Bank regarding a 115 pence per share cash offer.

AIM-listed Promethean Investments has announced that it has approached the board of London Scottish Bank regarding a possible cash offer of 115 pence per share, valuing the company at around £164 million (€236 million; $285 million).
 
Promethean said the offer represents a 26 percent premium to the closing share price of 91.5 pence on 27 January, the last trading day prior to Promethean notifying London Scottish that it had acquired a 3.7 percent stake in the Manchester-based lender.
 
A partial share alternative was also an option, Promethean said in a statement. The firm said it has requested access to confidential information from London Scottish and expects to complete its review within six weeks of receipt.
 
Promethean was not immediately available for comment.
 
London Scottish said in a regulatory statement that it was considering its position and an announcement is expected in due course. “In the meantime, London Scottish Bank shareholders are encouraged to take no action in respect of Promethean’s approach,” the company added in the statement.
 
If successful, the bid for London Scottish will be significantly larger than previous investments for Promethean.
 
Following its flotation on AIM on 30 June 2005, where it raised £50 million from blue-chip investors such as Fidelity and Lombard Odier, Promethean made its first investment last November when it purchased 15.05 percent of the issued share capital of Walker Greenback, a Buckinghamshire-headquartered manufacturer of wall coverings and furnishing fabrics.
 
In addition, Promethean has also acquired the entire share capital of Data Locator Group, a supplier of purchasing habits and UK consumer lifestyle data to the direct marketing industry, for £23.5 million in 2006. In March, Promethean provided equity and subordinated debt totalling £12.9 million in the Data Locator acquisition, with HSBC Bank providing a senior acquisition facility of £12.5 million.
 
Founded by Sir Peter Burt, the former chief executive of Bank of Scotland, Promethean has four principals operating out of its London office.