How Arrow Global’s new sustainability head will drive its ESG practices

Summary

• Arrow Global announced the appointment of new group head of sustainability, Paul Woods.
• The news comes just days after the company announced it was considering a takeover bid offer from private equity company TDR capital.
• The company had reported a H1 2020 loss due balance sheet revaluation non-cash charge of £134 million (US $184.1 million).

European debt focused asset management company Arrow Global (LON:ARW) announced the appointment of a new group head of sustainability, Paul Woods, on Friday. The company had just announced that it is considering a takeover bid offer from private equity company TDR capital. 

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Focus on ESG

Woods’ new role entails a focus on accelerating the company’s sustainability programme, which signals the company’s commitment to embed forward-looking environmental, social and governance (ESG) standards for all stakeholders. He was previously involved in the development of the firm’s ESG strategy which led to the creation of a dedicated sustainability arm within the group. 

Takeover bid 

The news comes just days after the debt-buying company announced it was considering a potential takeover bid from private equity firm TDR Capital. 

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The bid was the private equity company’s fourth offer which included a cash offering of 305 pence per share, totalling £540 million. The bid values the UK company at a 32 per cent premium over its closing price last week. 

The UK-based debt purchasing company’s board rejected all of TDR Capital’s previous three. However, the fourth and latest offer has drawn support from Arrow’s founder and CIO Zachary Lewy, who also owns 0.3 per cent shares of the company.  

Want to know more? Do Read: Sustainable Investing in The UK And Handbook Launch of Tokyo Exchange To Assist Identifying Companies 

The European private equity company had previously offered 290 pence per share in its third bid, which was rejected in January. It has a deadline of 8 March to either make a final offer or announce its intention to not do so. 

Earning results 

The company had reported a loss in its first half of FY2020 due to a balance sheet revaluation following the coronavirus crisis. The revaluation was a non-cash charge of £134 million (US $184.1 million). However, the company said it expected it to become profitable by the H2 2020 owing to an improvement of its collection’s performance. 

Want to know more? Do Read: TDR Capital and BCA Marketplace PLC Agree On Around £2 Billion Acquisition Deal 

Stock market reaction  

The company’s shares stood at GBX 285.50, down by 0.87 per cent as of 12 February, 10:57 AM GMT. In comparison, the broader index FTSE All Share was trading at GBX 3,725.40, marginally down by 0.03 per cent.