IWG ends private equity takeover talks as profits slump

IWG has ended months of takeover talks with no deal, saying that it believes none of the potential buyers are “capable” of delivering an acceptable price. In an announcement this morning, IWG said it has informed the three current bidders Starwood, Terra Firma and TDR that it does not intend to continue discussions. The three private equity firms had been working towards a deadline of 7 August to make an offer. IWG said: “After extensive discussions exploring the interest shown by multiple parties over recent months, the board unanimously believes that none of the interested parties is currently capable of delivering an executable transaction at a recommendable price.” “The board remains confident in the long-term value of and opportunities for IWG. It is the global leader in the co-working and flexible workspace sector, a market that is experiencing its most exciting stage of growth in over 30 years as increasing numbers of companies look to capture the strategic and financial advantages of flexible working.” Last month, the UK office provider secured an extension from the Takeover Panel to allow more time for its three suitors to make offers to buy the company. It had previously rejected offers from Prime Opportunities, which dropped out of the race last month, and Canada’s Brookfield Asset Management, which ended discussions in February. IWG has also announced financial results for the first six months of 2018, showing its pre-tax profit fell by a third to £54.3m from £80.8m. The company attributed the drop to “additional growth and talent investments” as well as marketing costs and a weakness in the UK market. The firm said it remained confident it would deliver full-year results in line with expectations. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette