Latest Company Taken Over at low cost: H&T Falls Prey
Sayonara, H&T Group After £297 Million Takeover
The curtain falls on H&T Group's 19-year run on London's AIM market, as the UK's biggest pawnbroker agrees to a $388 million deal with United States-listed FirstCash.
This sale marks yet another small and mid-cap UK company being snapped up at a bargain-basement price. Shares in H&T soared 42% in a week, following the 661p-per-share offer announced on Wednesday. The deal includes a 650p cash payment and a final dividend of 11p due in June, representing a 44% premium over H&T's previous closing price.
The reasons behind this trend are clear. Foreign buyers are pouncing on undervalued UK assets, particularly those outside the FTSE 100, where valuations are far below historical averages.
Founded in 1897, H&T has been a common sight on UK high streets, offering short-term loans against jewelry and watches. Before entering into formal talks, the company received several proposals since December. Despite confidence in the company's standalone prospects, uncertain gold prices, rising costs, and subdued consumer sentiment were identified as ongoing obstacles.
Investors seemed optimistic, with the AIM All-Share adding 1.5% this week, reaching levels not seen since December 2024. The FTSE 100 also gained ground, recovering some losses in the wake of US President Trump's global tariff storm.
Looking beyond H&T, other companies captured investors' attention. Metals One continued to climb after confirming the acquisition of the Swales gold project in Nevada. In junior mining, the proximity to a producing mine is often seen as a recipe for success, though results are not always favorable.
Belluscura, the maker of portable oxygen tanks, saw its shares touch the stars this week with no apparent trigger. The company even felt compelled to issue a statement explaining the sharp rise in share price, despite reporting record April sales and initiating a strategic review, which typically wouldn't encourage investors.
The review will explore multiple options, including strategic investment, partnerships, and alternative funding structures. Unsurprisingly, the shares soared 52% by the week's end.
Polarean Imaging rose 35% following news of its collaboration with Philips. The Dutch group plans to broaden the use of Polarean's Xenon lung MRI technology, which was showcased in over 30 clinical studies at the American Thoracic Society annual meeting this month.
Empyrean Energy's fortunes dropped when the company called off the Wilson River-1 well in Queensland. While the initial reaction may have been harsh, sentiment is likely to level off in the coming days.
Mirriad Advertising suffered a 35% decline despite raising £1.6 million, resolving its immediate funding needs. The decline resulted from issuing 16 billion new shares at a discount, diluting existing shareholders.
Finally, Solvonis Therapeutics secured £2 million in rapid-fire funding, marking a transformation from an ailing polymers specialist to a clinical-stage drug developer. Its chief scientific officer is Professor David Nutt, former government drugs adviser and head of the Centre for Psychedelic Research at Imperial College London.
Stay tuned to the Proactive Investors website for the latest UK small and mid-cap news.12345
Investors are keen on venturing into UK assets, with many small and mid-cap companies experiencing buying interest. This trend is evident as the H&T Group, a UK pawnbroker, was acquired for $388 million by FirstCash, a US-based company. Moreover, the stock market has seen an upward trajectory, with the AIM All-Share and FTSE 100 gaining ground. Besides H&T, companies like Metals One, Belluscura, Polarean Imaging, Empyrean Energy, Mirriad Advertising, and Solvonis Therapeutics have also attracted investor attention in the property, finance, business, and stock-market sectors.
