Uk office provider International Workplace Group shares get a boost on takeover approach

 

(qlmbusinessnews.com via telegraph.co.uk – – Wed, 27 Dec 2017) London, Uk – –

Shares in serviced office provider International Workplace Group jumped more than 27pc after the company received a takeover approach.

The FTSE 250 listed company formerly known as Regus said on Dec 23 it had been approached by Canadian private equity firm Onex and Brookfield Asset Management. The consortium has until Jan 20 to either announce a firm intention to make an offer for IWG, or say that it does not plan to make an offer.

Shares in IWG were up 27.4pc at 255.10p in morning trade.

IWG’s share price fell by 36pc in October after it warned on profits. The company said it expected group operating profit for 2017 to come in at between £160m and £170m, “materially below market expectations”. This was a result of weaker than expected sales, preventing it from making up a 1.9pc fall in revenues announced earlier in the year.

At the time of the profit warning, Mark Dixon, IWG’s chief executive, said that the company’s markets had “blipped” in the third quarter of the year, and that the effect had been exacerbated by hurricanes in the US and an earthquake in central Mexico in September. IWG has almost 3,000 centres in 115 countries.

The company has faced competition from newer rivals such as WeWork, which target start-ups with trendy office spaces.

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