Hyve Group reveals £306m takeover bid from US-based Providence Equity

Hyve Group shares jumped by more than 15 per cent on Tuesday after the London-listed events company revealed a takeover approach from US private equity firm Providence Equity.

Providence, which is based in Rhode Island and is focused on media, communications, education and technology investments, has bid 105p per share for Hyve, the firm told investors.

The bid, which values Hyve at £306million, follows a previously undisclosed offer of 101p per share for the group.

Hyve Group shares were up 15.9 per cent to 99.7p approaching the close, bringing 2023 gains to 37 per cent.

The group said: ‘Following the recent movement in Hyve’s share price, the board of Hyve confirms that it has received a preliminary and conditional approach from Providence Equity regarding a possible cash offer for Hyve of 105 pence per Hyve share.

‘The board of Hyve is considering its position with respect to the proposal and a further announcement will be made in due course.’

Under city rules, Providence is required to announce a firm intention to make an offer for Hyve by 5pm on 21 March or walk away.

Hyve saw annual turnover rebound by more than £100million last year, having been hammered by Covid-19 restrictions in the prior year.

The firm, which called time on operations in Turkey, Indonesia and Russia last year, is still to be boosted by the return of Chinese trade upon the full reopening of its economy.

Hyve was founded as International Trade Exhibitions in 1991 by the Shashoua family, who were looking to capitalise on former Soviet Union states transitioning to market economies, with the first event being a motor show in Moscow.

The group’s share price remains 11.2 per cent lower than this time last year and 82.2 per cent below its valuation five years ago.