Materials distributor dismissed Atlas Holdings’ proposal as ‘undervaluing’ firm but US company said bid was significantly above its ‘undisturbed’ share price

The private equity firm that owns Bovis and Permasteelisa has defended its offer for Brickability which the materials distributor said “fundamentally undervalued” it when it was tabled last month.

Brickability, now renamed BRCK, yesterday said it rebuffed Atlas Holdings’ 65p a share offer six days later and in a statement to the City added it “has agreed to provide some limited further information to Atlas to establish whether it is prepared to improve its Indicative Offer Price”.

But in an update yesterday afternoon, the US company said its offer was “a 62.5% premium to BRCK’s undisturbed share price of 41p as of 30 March; and a 46.7% premium to BRCK’s closing share price of 44p as of 16 March (being the date prior to approach)”.

Brickability Group LSEG(1)

Brickability, now renamed BRCK, has been a listed business for more than six years

It added: “When making the proposal, Atlas stressed to the Board of BRCK that it would only be able to make a firm offer if it was given the opportunity to conduct thorough due diligence.

“To date, BRCK has provided only very limited non-public information to Atlas. Atlas notes that in its announcement [yesterday], the Board of BRCK plans only to provide ‘some limited further information to Atlas to establish whether it is prepared to improve its Indicative Offer Price’.

“While Atlas is prepared to study whatever information BRCK decides to provide, it is doubtful that ‘limited further information’ will enable it to confirm the proposal.”

It said: “Atlas believes that the proposal, which is subject to customary conditions including, as noted above, completion of thorough due diligence to the satisfaction of Atlas, would offer shareholders the opportunity to receive cash proceeds at a very significant premium to BRCK’s undisturbed share price.

“Any further announcement will be made in due course.”

In its last set of results, AIM-listed BRCK, which is led by Frank Hanna, the former joint chief executive of brick firm Michelmersh, saw revenue rise 7% to £637m in the year to March 2025 but pre-tax profit fell 45% to £12m.

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