Tomkins board accepts bid proposal

ERJ staff report (DS)

London - The board of Tomkins PLC has agreed a takeover bid by Pinafore Acquisitions Limited. The Acquisition values Tomkins' existing issued and to be issued share capital at approximately £2.89 billion. Tomkins owns Gates Rubber as well as Schrader Electronics.

Pinafore is a newly incorporated company formed for the purpose of implementing the Acquisition at the direction of, and jointly owned by a consortium comprising Onex and Canada Pension Plan Investment Board.

Commenting on the Acquisition, David Newlands, Chairman of Tomkins, said, "After careful consideration the Independent Directors of Tomkins believe that the cash offer from Onex and CPPIB provides Tomkins' shareholders with certain value today and fairly reflects both the value of the group today and its future potential. The Independent Directors believe that the transaction is fair and reasonable and is in the best interests of Tomkins Shareholders and hence unanimously recommend that Tomkins shareholders vote in favour of the resolutions to be proposed at the Court Meeting and the General Meeting."

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Press release from Tomkins