TFG stock rises after hunter point capital agrees to acquire stake in equitix
Investing.com -- TFG stock rises 3.5% on Monday after the company announced that Hunter Point Capital (HPC) has agreed to acquire a 16.1% stake in Equitix at an implied enterprise value of £1.3 billion ($1.65 billion), excluding net debt.
The independent investment firm will acquire 14.6% from TFG and 1.5% from management, leaving TFG with approximately 80% ownership in Equitix after the transaction. The acquisition is subject to customary closing conditions, including required regulatory approvals.
The deal values Equitix at a premium, with analysts noting the significant valuation multiple. Jefferies commented on the transaction: "We expect Equitix to grow into this higher implied valuation (of 16-17x EV/EBITDA) over time, particularly now with an additional shareholder that could help fund this growth."
This partial divestment allows TFG to monetize a portion of its Equitix investment while maintaining majority control. The addition of Hunter Point Capital as a strategic investor could potentially accelerate Equitix’s growth trajectory through additional funding capabilities.
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