CANADA/UK - Canada Pension Plan Investment Board and Onex Corp. have garnered sufficient shareholder support for their £2.89bn ($4.4bn) purchase of Tomkins Plc.
About 90% of Tomkins voters backed the bid at a general meeting today, the London-based maker of auto parts and bath tubs said in a statement. Investors will receive 325 pence per share in cash, 41% higher than Tomkins' July 16 closing price, the day prior to the approach.
Tomkins is the latest European manufacturer to be targeted as buyout firms and cash-wielding global engineering companies seek to invest in new markets and products. Emerson Electric Co. agreed to pay $1.5bn for Chloride Group Plc, a British maker of backup power systems that also attracted a bid from ABB Ltd.
Standard Life Investments, which controlled 2.97%of Tomkins, said July 27 that the bid's valuation of the company was "without a shadow of a doubt, too low."
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