February 9, 2018 / 8:16 AM / a year ago

UK's Hogg Robinson gets AmEx GBT takeover offer, to sell unit to Visa

(Reuters) - British business travel company Hogg Robinson Group HRG.L said American Express Global Business Travel (GBT) made a recommended offer for the company and that it agreed to sell its payments technology business, Fraedom, to Visa Inc (V.N).

Hogg Robinson said GBT would pay up to 120 pence per share, which according to Reuters calculations would value the company at up to 393.1 million pounds ($549.6 million), a nearly 54 percent premium to the stock’s close on Thursday.

U.S. credit card issuer American Express Co (AXP.N) has a 50 percent holding in American Express GBT.

Visa said it would pay 141.8 million pounds for Fraedom.

However, if the Fraedom sale does not complete prior to a court meeting to approve the AmEx GBT takeover, Hogg Robinson said its shareholders would receive a minimum consideration of 110 pence per share in cash.

Visa said separately that it expected the Fraedom deal to close in the first quarter of 2018.

Shares of Hogg Robinson were up 48 percent at 116 pence at 0911 GMT in thin trading.

They were top gainers on all of London Stock Exchange by a handy distance.

Reporting by Rahul B in Bengaluru; Editing by Amrutha Gayathri and Gopakumar Warrier

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