UK plc to stay in shareholder hands
Fewer public to private deals expected in 2006
Analysis of the UK buy-out market by Barclays Private Equity and Deloitte has
predicted that there will be few private equity buy-outs of listed UK companies
in 2006.
Mark Pacitti, corporate finance partner at Deloitte, said that while it was
still feasible that a consortium of the big private equity houses could make a
serious play for a FTSE 100 company’ figures revealed that corporate market is
becoming much more shareholder value focused.
‘The corporate market is taking inspiration from the success of the dynamic
private equity players in 2005. Influenced by the private equity model, plc
boards are developing clear, strategic plans for growth as well as working bank
debt harder for special dividends and buy back plans,’ Pacitti said.
Barclays Private Equity and Deloitte revealed that the buy-out market has got
off to a shaky start in 2006 with only £3.1bn of deals recorded for the year to
date. One of the main causes of this slump was the dramatic decline in public to
private deals.
In 2005 public to privates boomed hitting £7.2bn (the second highest annual
total) from 20 transactions.