Shares in UK catering supplier Brake Brothers jumped 14% after it said that the Brake family is considering both selling its 58% stake in the company and finding a buyer for the group.
The moves are being considered as part of a strategic review prompted by the planned retirement of company chairman Frank Brake. Credit Suisse First Boston has been appointed to assist with the review.
In a statement the company confirmed that: The Brake family is considering diversifying its significant investment in Brake Bros.
The board plans a strategic review of the company with a view to maximizing value for all shareholders, including the possibility of a buyer being sought for the company as a whole.
Last year Brake Brothers expanded on the continent through the acquisition of six French companies. It says that: The Board of Brake Bros believes that there are attractive opportunities to develop the company’s business further, both in the UK and France, and would wish to find a partner with ambitions to pursue these opportunities.
News of the moves pushed Brake Brothers shares higher on Monday, after an initial advance on Friday. A rise in share value of 82.5 pence to 675 pence saw the value of the company nudge GBP350 million ($498 million).