Trian pleased with developments at Ferguson – On 13 June 2019, funds managed by Trian announced a 5.98% interest in the shares of Ferguson, valued at approximately GBP736 million at that time. This company had invested approximately GBP250 million of that, at an average cost of GBP52.85 per share. In addition, because Ferguson receives the vast majority of its revenue in U.S. Dollars, the company hedged its US dollar exposure.
Ferguson announced on 3 September 2019 that it intends to demerge its UK operations, subject to shareholder approval, and that Kevin Murphy, CEO of Ferguson’s US operations, will succeed John Martin as Group CEO as at 19 November 2019. In addition, Ferguson announced that in light of the fact that Ferguson will be wholly focused on North America following the demerger, its board is considering the most appropriate listing structure for the group going forward. Trian has advised the Board that it is pleased with these developments.
As at 30 June 2019, the shares of Ferguson were £56 and the NAV was 102.89 pence per ordinary share. Today the shares are around £63. The US dollar hedge may have subtracted from the NAV a little, however.
TI1 : Trian pleased with developments at Ferguson
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