Cinven tables £1.4bn bid for FTSE 250 asset manager Sanne

Asset manager Sanne has sat down with private equity suitor Cinven after already rejecting its advances four times.

The two plan to hold talks over the £1.4 billion potential offer that Cinven has indicated it could make for the Jersey-based company.

Sanne first revealed that it was being courted by Cinven a month ago. The private equity giant had tabled an 830 pence per share bid on its third approach to Sanne.

But Sanne’s board rejected that offer, saying it did not reflect its full potential. The bid was “opportunistic”, Sanne said.

Two weeks later Cinven came back with a new offer, this time for 850 pence per share in Sanne. The board again rejected the bid and again it said that the bid did not reflect Sanne’s full potential.

Friday’s 875 pence per share bid has proven good enough to get the board to the negotiating table. The bid is merely indicative, and Sanne stressed that there is no certainty that any concrete offer will be made.

It said: “The board of Sanne confirms it has received a fifth unsolicited, non-binding proposal from Cinven regarding a possible all cash offer at a price of 875 pence per share.

“The board confirms it has consequently decided to enter into discussions with Cinven.”

Shares in the FTSE 250 company have soared by around 40% from just over 600 pence per share in the past month since Cinven’s interest was first revealed.

Their value rose by another 11% to 860 pence on Friday.