Tyman's shares rise after Quanex sweetens takeover deal for building supplier

Tyman looks set to become the latest UK firm to be bought by a US rival

Shares in building products supplier Tyman surged on Friday following news that Quanex, the US suitor trying to acquire it, has sweetened the cash portion of its takeover bid.

The revision came after Tyman's investors raised issues over the volatility in Quanex's stock and currency fluctuations since the original offer was made on April 22. In an enhanced deal, Tyman shareholders are now poised to receive a special interim dividend of 15p per share on top of the former offer of 240p and 0.05715 of a new Quanex share for each Tyman share they hold.

The initial bid pegged Tyman's value at around £788million. Quanex, the Texas-headquartered firm known for manufacturing components for windows and doors, announced jointly with Tyman that post-acquisition, Tyman would be removed from the London Stock Exchange (LSE), with the merged entity being traded in New York instead.

This transaction is set to see Tyman join the growing list of UK companies being taken over by American firms, as several have recently either departed the LSE or decided against listing there. ARM, Britain's largest semiconductor firm, took its business to the New York exchange last fall, a move seen as a significant setback for the LSE.

Similarly, Irish construction materials conglomerate CRH transferred its listing to Wall Street in June 2023, and plumbing parts distributor Ferguson had already relocated there in 2022. Tyman conveyed in a market update: "The Tyman directors believe that the transaction, as amended by this announcement, is in the best interests of Tyman shareholders as a whole."

Following the announcement, Tyman's stock price enjoyed a 2.7% uptick during Friday's morning trading session.