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On 30 July, HML Holdings plc that it had agreed to the terms of a cash offer by BDB Nominees limited, a vehicle acquiring the company on behalf of investors Harwood Capital LLP. Harwood Capital is acquiring the company on behalf of one of its investment management clients, Harwood Private Equity V L.P, who will ultimately own BDB and HML upon completion of the acquisition.

The offer values HML at £19.1 million, a 27% premium on its closing price as of 29 July 2020, and a 44.5% premium on its 3 month volume weighted average price.

Excluding the 15% of HML shares beneficially held by Harwood, BDB have received irrevocable undertakings in support of the offer representing 36% of HML’s issued share capital (this includes 9% of shares held by HML directors).

HML Chair, Richard Smith has said the following in regard to the offer:

‘We are proud of HML's achievements and confident in the Company's future prospects and strategy. We are also conscious that, in the short term at least, Covid-19 has increased the risks and uncertainties for delivering upon the Company's strategy. Within a private company environment, the Company's management will be better able to focus on strategic delivery, take a longer term view on the investment decisions required to grow the business, and eliminate a meaningful proportion of the financial cost associated with being an AIM quoted company. Given these factors, and the relatively illiquid market for HML Shares, we feel that the Offer represents an attractive opportunity for HML Shareholders and unanimously recommend that shareholders accept the Offer.’

The offer represents the ninth takeover announcement in July (including possible offers and formal sales processes/strategic reviews), marking the busiest month for deal activity this year and signaling a return to the monthly volumes before the pandemic, which saw 5 announcements in January and 8 announcements in February 2020, before dropping to a low of 2 announcements in May.