M&G Criticizes UDG Healthcare Private Equity Deal, FT Reports

M&G Investments criticized plans to sell UDG Healthcare to the firm Clayton Dubilier & Rice, saying the scheme “fails to offer fair value to ordinary shareholders, including the customers on whose behalf we invest,” according to the Financial Times.

M&G’s stance aligns with top UDG shareholder Allianz Global Investors, which also opposes the deal. Shareholders are set to vote in June on an all-cash offer worth GBP2.8b ($3.97b). M&G is a top-five shareholder in UDG, the FT said.

Opposition to the sale comes amid more widespread concern among some holders of U.K. listed companies that private equity groups are capitalizing on lower market valuations owing to Brexit and the Covid-19 pandemic to snatch up firms at prices below their true values, according to the newspaper.

UDG and CD&R both declined to comment to FT, though UDG chair Shane Cooke said when the deal was first announced earlier this month that it was an “attractive offer.”

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