Rollercoaster continues | Awash with cash | Cheeky offer
A nice bounce in the share prices of UK’s small caps was short lived with Trump’s ‘extremely hard’ message doing precisely that for the UK’s smaller companies, which immediately gave-up plenty of the gains from the previous session. More positively, the valuation of good, cash-rich companies are looking even more appealing to the patient (tough-skinned) investor, with private equity once again swooping on one unloved UK small cap, sending its shares higher.
The share price weakness of BRCK Group (AIM:BRCK), formerly Brickability, the distributor and provider of specialist products and services to the UK construction industry, has encouraged a US private equity group to make a cheeky offer for the business. Atlas Holdings has put forward a proposal to acquire BRCK at a price of 65 pence in cash. That’s ‘coincidentally’ the same as the AIM admission price back in 2019 and a c.60% premium to the closing share price the day before the announcement. The BRCK Board has unanimously concluded that it fundamentally undervalues BRCK and accordingly rejected this proposal on…