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Financials

UPDATE 1-Engineering firm Renishaw mulls sale as founders keen to bow out

(Adds details on sale plan, executive comments and background)

March 2 (Reuters) - Renishaw Plc said on Tuesday it was seeking a buyer as the British engineering firm mulls several options after its founders announced their plans to sell respective majority stakes in the company.

Executive Chairman David McMurtry and Non-Executive Deputy Chairman John Deer, who together own about 53% of Renishaw, are looking to dispose of their stake they held for decades, the company said.

Renishaw said it was seeking offers, but has received none so far and could also cancel its decision at any time. Seeking potential suitors is often a standard part of restructuring processes where the company weighs all options.

Shares of the company, which makes precision measurement equipment used in products ranging from jet engines to smartphones, opened 13.8% higher at 6,600 pence in early trade, indicating investor approval of the plans.

“Now finding ourselves in our 80s, our thoughts have increasingly turned to considering the future of our shareholdings in the company and how we can actively contribute to securing the future success of the business,” McMurtry and Deer said in a joint statement.

The company, founded in 1973 and publicly listed in 1984, made a strong recovery after being hurt by the coronavirus-induced lockdowns, with its half-yearly profit more than tripling and as it reinstated an interim dividend. (Reporting by Aniruddha Ghosh in Bengaluru; Editing by Ramakrishnan M. and Sherry Jacob-Phillips)

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