Investors are snapping up shares in frontier markets project manager WYG (WYG:AIM) today on speculation the business could be a bid target.

In a statement this morning, the management team, led by chief executive Paul Hamer, say they are starting a ‘formal review of strategic options open to the company’. WYG’s existing platform is close to capacity, Hamer says.

Hamer says: ‘WYG is enjoying strong growth in its project pipeline and is creating almost more opportunities than it can readily service directly using its existing model of organic growth, supplemented by smaller bolt-on acquisitions and partnerships.’

Options to be considered include a sale of the business, if an interested party can be found.

WYG - Comparison Line Chart (Rebased to first)

Alternatives include a strategic partnership, merger, acquisition, new bank facility or a continuation of existing strategy.

Hamer has led an impressive turnaround at the group since a financial restructuring in 2011, generating an underlying profit before tax of £1.9 million in the six months to end September.

Shares trade 11.3% higher at 117p at midday.


Issue Date: 26 Jan 2015