Apex makes £1.5 billion bid for FTSE 250 fund administrator Sanne

The board of Sanne has revealed it would back a £1.5 billion bid from fund servicing group Apex if the bidder made a formal offer.

The company said that Apex has indicated it might make a 920p per share offer for the FTSE 250 fund administrator.

The companies are in “advanced discussions” over the bid, which is valued at more than twice Sanne’s share price before offers started to come in for the company.

“Having considered the possible offer, together with its financial advisers, JP Morgan Cazenove and Jefferies, the board of Sanne has indicated to Apex that the possible offer is at a value that the board would recommend, should a firm intention to make an offer … be announced on such terms.”

Apex is already “well advanced” in performing its due diligence checks on Sanne and is working to “complete the review as quickly as possible”, Sanne said.

Apex now has until the end of the working day on August 30 to make an offer for Sanne, or withdraw from the bidding.

Sanne has already rejected a £1.4 billion bid from Cinven, a private equity giant.

Following the announcement, shares in Sanne reached around 910p, up approximately 8%.

It is below the possible offer price, indicating that investors are unsure whether Apex will make its bid final.