Property management company Styles & Wood built up a 20.7 per cent gain in its share price today, as it announced it had agreed to a £42.5m takeover.
Central Square Holdings, the investment firm founded by business tycoon Steve Parkin, bought Styles & Wood with a view to merging it with Southerns.
Central Square already owns Southerns, a furniture and interior design company, and believes that combining the two companies' capabilities will create efficiency and strengthen the client base.
Styles & Wood's board recommended the offer, saying the business was operating in a highly competitive market "against the backdrop of a more challenging UK macro-economic environment with increasing concerns over the level of growth, investment and consumer confidence as Brexit discussions continue".
"Having considered in detail the best interests of all shareholders and the company as a whole, the independent directors believe that Central Square's all-cash offer provides an attractive opportunity for Styles & Wood's shareholders to recognise immediate value for their shares, at a 24 per cent premium to the current share price, against a more challenging macro-economic environment and the backdrop of a highly competitive market," said Robert Hough, one of the company's non-executive directors.
Styles & Wood ended the day in the top five risers on the FTSE Aim All-Share index.
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