Sanderson buy-out wins shareholder backing

Sanderson shareholders have overwhelmingly decided to take the company out of the stock market after agreeing to a proposed £115 million management buy-out.

Sanderson shareholders have overwhelmingly decided to take the company out of the stock market after agreeing to a proposed £115 million management buy-out.

The buy-out is being led by the company's chief executive, Christopher Winn, and its financial director, Mike Stoddard.

But the future of Sanderson's chairman, Paul Thompson, is in doubt, according to a company representative. Thompson could decide to quit as chairman or leave the reseller altogether after the deal is completed next month.

Last week the MBO, which was proposed in November, was accepted by shareholders holding more than 70 per cent of the company, including Thompson, which holds a significant stake in the reseller.

Backed by venture capitalist Apax partners, the deal was announced to the City on 30 December 1999. The initial offer was about a third higher than the firm's share price, which valued the company at about £112 million. Since then, the share price has risen to that of the offer.

Winn and Stoddard decided to re-privatise the company as they believed its stock market rating did not reflect its true potential. The company was floated on the London Stock Exchange in 1983.

Last month Sanderson posted its full-year results for 1999, showing a 30 per cent rise in pre-tax profit from £8.6 million to £11.2 million.