Time Products Plc, the UK retailer of watches and luxury goods, has announced that completion of a management buyout is imminent.
Lesley Michaels, Time Products’ finance director said he expected the transaction to be completed within the next six weeks.
According to Michaels, the financing of the transaction will be provided by management and a debt provider. No equity sponsor was involved in the deal.
Commenting on the rationale underlying the buyout, Michaels said: “Time Products has considerable cash balances, more than it actually needs. The alternative to doing this deal would be to give the cash back to shareholders.”
Guiness Peat Group Plc, Morley Fund Management and Edinburgh Fund Managers, who between them hold 34 per cent of the group’s issued stock, have all reponded favourable to the offer.
Prior to yesterday’s announcement, Time Products’s shares were trading at 170p.