UK property group to delist

Barlows Plc said today it had received an offer to undertake a £37m buyout which would relieve it of the “burdens” of being a listed company.

The board of Barlows Plc, the listed UK property investment group, today recommended a buyout offer from Chepstow, an acquisiton vehicle set up by a group of investors including Barlows directors.

Chepstow’s bid, at 72p per share, values the business at £37m, 23 per cent above the company’s market capitalisation on May 15, the day before the offer was made.

The group said it welcomed the move as taking the business private would do away with “the financial, managerial and regulatory burdens of being a listed company.” Following the announcement Barlows, which last year made a profit of £2.2m on turnover of £6.5m, saw its share price rise by around five per cent in early trading.

Barlows said he deal would be financed by way of a £35.5m loan made available by The board of National Westminster Bank.