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Canada’s Brookfield buys Britain’s HomeServe for $5 billion
Global Banking & Finance Review®
Company
By Emma-Victoria Farr and Sachin Ravikumar
FRANKFURT (Reuters) -Canada’s Brookfield Asset Management has agreed to buy British home repair services firm HomeServe for 4.08 billion pounds ($5.04 billion), as it looks to broaden its exposure to UK residential infrastructure investments.
News of the recommended cash deal, which adds to Brookfield’s $725 billion portfolio of alternative assets, sent HomeServe’s shares more than 10% higher in early trading on Thursday.
HomeServe shareholders will receive 1,200 pence in cash for each share they hold, representing a roughly 71% premium to the stock price prior to its disclosure of takeover talks with Brookfield in April.
“We look forward to supporting HomeServe’s continued growth globally as critical residential infrastructure is upgraded in the coming years to drive decarbonisation and improve energy efficiency,” Brookfield Infrastructure Managing Partner Sikander Rashid said.
Earlier in May, Reuters reported that Brookfield was working with banks to sell its 45% stake in French towers firm TDF Group as it seeks to capitalise on growing demand for infrastructure assets across Europe.
Citigroup and Credit Suisse are working on the sale which could value TDF at more than 5 billion euros ($5.30 billion).
($1 = 0.8085 pounds)
(Reporting by Sachin Ravikumar in Bengaluru, Emma-Victoria Farr in Frankfurt; editing by Sinead Cruise and Jason Neely)
Brookfield Asset Management is a global alternative asset manager with a focus on real estate, renewable power, infrastructure, and private equity investments.
HomeServe is a British home repair services company that provides home assistance and repair services to homeowners across the UK.
A cash deal refers to a transaction where the buyer pays the seller the full amount in cash, rather than financing the purchase through loans or credit.
In finance, a premium is the amount by which the price of a financial instrument exceeds its face value or intrinsic value, often reflecting additional value or risk.
Infrastructure investment involves allocating capital to physical assets such as roads, bridges, and utilities, which are essential for economic development and public services.
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