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Three firms plan London Stock Exchange exit in £3bn combined takeovers

Bodycote, Gamma Communications, and Capricorn Energy have announced plans to leave the London Stock Exchange through takeovers totalling over £3bn.

  • Bodycote is set to be acquired by US private equity firm Veritas Capital for £1.9bn.
  • Gamma Communications has recommended a £1.1bn offer from UK private equity firm Epiris.
  • Capricorn Energy has agreed a $396m (£292m) deal with Norwegian rival DNO.

Three listed companies, Bodycote, Gamma Communications, and Capricorn Energy, have unveiled plans to exit the London Stock Exchange, with combined takeover values exceeding £3bn. These announcements were made on the first trading day following the summer break.

Macclesfield-based Bodycote, a FTSE 250 member since 1972, has reached an agreement to be acquired by US private equity firm Veritas Capital for £1.9bn. The offer of 932p per share represents a 41.4 per cent premium over the average share price for the twelve months to May.

Gamma Communications, also a FTSE 250 constituent, has recommended a £1.1bn offer from UK private equity firm Epiris. This follows earlier talks with European buyout firm Waterland. Epiris's all-cash bid offers a 53 per cent premium to Gamma's shares before takeover speculation began several months ago.

Separately, Scottish energy firm Capricorn Energy has agreed a $396m (£292m) deal with Norwegian rival DNO, ending its 38-year presence on the London Stock Exchange. Capricorn switched its recommended offer from Genel Energy to DNO after the Scandinavian bidder tabled a higher offer.

These planned takeovers contribute to what is described as a record pace of companies leaving the London Stock Exchange this year, with over 50 firms having either accepted offers or being subject to interest from private or foreign-listed entities.

Why this matters: The departure of these companies adds to the ongoing trend of firms leaving the London Stock Exchange, potentially impacting the market's composition and attractiveness.

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