Homeserve on Friday said it expects to trade in line with expectations and provided an update on its takeover from Brookfield Infrastructure, which is anticipated to take place in the fourth quarter.
The home repairs company initially came to an agreement for a £4.08 billion takeover by Hestia Bidco, a subsidiary of Brookfield. Brookefield offered 1,200p per share in cash.
Who doesn’t love an all-cash deal?
Homeserve said on Friday that the acquisition is making “good progress on submitting all the regulatory and competition notifications and pre-notification required to complete the transaction.”
It seems they are “building” a strong relationship…
They added that the transaction is forecasted to close in the fourth quarter of 2022.
Furthermore, according to Homeserve, during a seasonally quieter period, Homeserves membership businesses in North America and EMEA continued to make good progress. Its policy retention rates remained strong, and customer service levels were high.
The company’s Home Experts were impacted by moderation in consumer demand in the UK. However, the number of trades on Checkatrade passed 47,000 as trades retention continued to improve. I guess they have the “tools” to fight off inflation.
Homeserve shares were unchanged on Friday following the announcement.
Despite Homeserve remaining unmoved on Friday, its shares have improved significantly in 2022. Its share price has jumped 31% this year and increased 51% over the last 6 months.
Of course, talks of a takeover have boosted its stock, but shareholders must be pleased during a difficult period in the market.