Print Article



















18 July 2008

Leading international law firm Mayer Brown is advising investment firm Laxey Partners Limited on its proposed offer for logistics group TDG.

Mayer Brown is also advising Laxey on its proposed offer for The Laxey Investment Trust PLC ("TLIT") by LIT plc, a newly incorporated Isle of Man company formed at the direction of Laxey Partners Limited for the purposes of implementing the acquisitions of TDG and TLIT.

TDG, which runs the supply chain for Argos and J Sainsbury, has agreed to recommend a £203m cash offer. Laxey, which is licensed in the Isle of Man, offered 250p-a-share in cash or, as an alternative, 200p cash plus 6.625 shares in the new acquisition vehicle, LIT.

TDG has more than 7,000 employees and operations in the UK, Ireland, France, Germany, Spain, Holland and Belgium. It had £670m revenues last year. Clients include Argos, J Sainsbury, Marks and Spencer, ICI Paints and Honda. Their UK operation, won a number of awards in 2007 to manage product flows from the Far East, including work for ICI Paints to operate an end-to-end supply chain for paint accessories sourced from China.

Laxey is a global value investor which manages a range of assets and funds for institutional investors, taking a proactive approach to help enhance the value of its investments. Its asset management business comprises the management of listed closed end funds, hedge funds, real estate opportunity funds and private equity investments. As at 31 December 2007, Laxey had net assets under management of approximately US$1.7billion.

William Charnley, partner at Mayer Brown said: “This is a complex transaction as it involves two simultaneous public takeovers, with the enlarged group being admitted to AIM afterwards. TDG's property portfolio presents scope for long term development.”

The Mayer Brown team working on the deal included partners William Charnley, Andrew Sharples, Martin Scott, Andrew Stanger, James Hill, Nigel Wright and Stephanie Bates.

Both offers will be implemented via schemes of arrangements. Shareholders of TDG and TLIT are due to vote on Laxey's bids on September 3.