Sun Capital will not make offer for Clipper Logistics

Shares of Leeds-based retail logistics firm Clipper Logistics plc fell 5.5% on Wednesday afternoon after it said Sun Capital Partners Group does not intend to make an offer for Clipper.

Clipper shares soared soared 22% on November 22 in response to a preliminary approach from Sun Capital Partners.

Clipper Logistics has a stock market value of around £300 million and its customers include Asda, Browns and Morrisons.

Clipper said its board and Sun Capital were unable to agree terms that would be recommendable to Clipper shareholders “given the medium term growth prospects of the company.”

Clipper Logistics said in a stock exchange statement: “The board of Clipper Logistics plc notes today’s announcement by Sun Capital Partners Group VII, LLC stating that, in accordance with Rule 2.8 of the City Code on Takeovers and Merger, it does not intend to make an offer for the company.

“Accordingly, Sun Capital is now subject to the restrictions under Rule 2.8 of the Code. 

“The board confirms that discussions regarding a possible offer took place between the parties, and the views of a number of independent Clipper shareholders were sought.

“However the board and Sun Capital were unable to agree terms that would be recommendable to Clipper shareholders, given the medium term growth prospects of the company.

“Consequently, both sides agreed to terminate discussions.”

Clipper added: “Trading remains strong, following a busy Black Friday and Christmas period.

“Clipper experienced its busiest Black Friday period ever, with volumes up more than 35% year on year, underpinning the board’s expectations for the full year.”

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