Tomkins shareholders vote in favour of takeover by Canadian consortium
01 Sep 2010
Shareholders of auto and building products maker Tomkins Plc yesterday voted overwhelming in favour of the £2.87 billion ($4.37 billion) takeover by a Canadian consortium despite opposition from some institutional shareholders of the UK engineering products company.
More than 90 per cent of Tomkins shareholders voted in favour of the takeover by Canada Pension Plan Investment Board and Canadian private-equity firm Onex Corporation, despite opposition from biggest institutional shareholders like pensions group Standard Life, which said that the 325 pence-a-share offer undervalues the company.
After the vote, Edinburgh-based Standard Life, which holds about 2.9-per cent stake, said that the Canadian consortium's valuation for Tomkins was too low, and warned that the vote could make more overseas companies to bid for UK companies at an unrealistically low price.
"Although we of course respect the outcome of the shareholder vote, we remain of the view that this bid undervalues Tomkins future prospects," said David Cumming, Standard Life's Head of UK Equities.
"We also hope that this vote will not be seen as a signal to other potential bidders for UK corporates that UK shareholders are prepared to sell assets too cheaply as a consequence of current depressed market conditions,'' he added.
Standard Life had said earlier that it would be difficult for the board of Tomkins to muster the 75 per cent support required for the deal to go through.
