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UK-based construction materials supplier BRCK Group has rejected a takeover proposal from US private equity firm Atlas Holdings, triggering a sharp rise in its share price. The non-binding offer of 65 pence per share valued the company at approximately GBP 209.4 million (around USD 276 million). BRCK's board unanimously declined the proposal, stating that it did not adequately reflect the company's value. Following the announcement, the company's shares rose by over 24%, despite remaining lower on a year-to-date basis amid broader weakness in the UK construction sector. Under takeover regulations, Atlas has until later this month to either formalise a revised offer or withdraw its interest.
BRCK Group has rejected a takeover approach from Atlas Holdings in the past week, declining a 65 pence-per-share cash proposal on the grounds that it undervalued the business, a decision that led to a sharp rise in the company's stock price. Advertisement
The indicative and non-binding offer, formally reviewed by the board in recent days, placed a valuation of approximately GBP 209.4 million (around USD 276.37 million) on the company. Following deliberations with its advisers, the board unanimously rejected the proposal, stating that the offer did not adequately reflect the group's underlying value and prospects.
The takeover interest from Atlas Holdings, which had initially approached the company earlier this year, is part of a broader trend of overseas investors targeting UK-listed firms amid relatively subdued equity valuations. The proposal was made under a non-disclosure arrangement, allowing preliminary engagement between the parties before a formal indicative offer was submitted.
Despite rejecting the offer, BRCK indicated that it would provide limited additional information to Atlas to assess whether the bidder is willing to revise its proposal. However, the board signalled that it would only consider further engagement if a revised offer reflected a valuation it could recommend to shareholders, in order to avoid unnecessary operational disruption and costs.
Following the announcement, BRCK's shares rose by more than 24% in market trading, reflecting investor optimism regarding the company's valuation and potential for improved bids. The stock movement comes against the backdrop of a challenging year for the company, with its share price having declined significantly earlier due to weakness in the UK construction sector.
Under the UK Takeover Code, Atlas Holdings is required to clarify its intentions within a defined timeline. The firm has until later this month to either announce a firm intention to make an offer or withdraw from the process, unless an extension is granted by regulators. This places the company in a formal offer period, drawing closer scrutiny from investors and market participants.
BRCK operates as a distributor of construction materials including bricks, roofing tiles, cladding systems, and other building products, supplying developers, contractors, and housebuilders across the UK. The company's decision to remain independent at this stage reflects confidence in its operational outlook, even as consolidation activity continues to shape the global construction materials sector.
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