Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Business services firm moves closer to private equity takeover
Thursday 28 Apr 2022 Author: Mark Gardner

Homeserve (HSV) 970.5p

Gain to date: 43.7%

Original entry point: Buy at 675p on 24 March 2022


On 21 April business services group Homeserve (HSVannounced it had entered talks with Brookfield Infrastructure in relation to a potential offer.

Brookfield Asset Management is one of the world’s largest alternative investment management companies with $688 billion of assets under management.

There are a number of factors which make HomeServe a natural target for private equity ownership.

These include its inflation-protected, annuity like income streams. Specifically the defensive and recurring nature of its profits enable it to support higher levels of debt.

As a private company there are a number of actions that could be undertaken that would potentially be harder to execute as a listed company.

Brookfield now has until the close of business on 19 May 2022 to make a firm offer or walk away. The stock has gained 38% since Brookfield’s first approach.

Business services analyst David Greenall at Davy suggests the business could be valued at more than £15 a share.



SHARES SAYS: Hold tight and wait for details of the bid. 

‹ Previous2022-04-28Next ›