August 6, 2010 / 7:54 AM / in 8 years

UPDATE 2-Tomkins receives no other approaches, profits soar

* Chairman says has not received any other approaches

* Says knows of only two shareholders who oppose deal

* H1 adjusted operating profit $295.5 mln vs $89.8 mln

* Sees uncertainty, says H2 will be affected

* Shares rise 0.4 percent (Adds detail, chairman comments, share price)

By Sarah Young

LONDON, Aug 6 (Reuters) - British car parts maker Tomkins TOMK.L said it had not received any other approaches since recommending an offer from a Canadian consortium in July as it posted a 229 percent rise in first-half profit.

Tomkins agreed to be acquired by Canadian investors Onex Corp OCX.TO and the Canada Pension Plan Investment Board for 2.9 billion pounds ($4.59 billion) and the offer is currently being considered by shareholders. [ID:nLDE66Q0B4]

“No other parties have approached me,” Chairman David Newlands told reporters on a conference call on Friday, adding that should any “bona fide” bidders emerge, he would not put any barriers in their way.

When asked if he had received any further undertakings from shareholders to vote in favour of the deal Newlands said he had not.

Currently the board has received the green light from the company’s largest shareholder Schroders Investment Management and smaller holder JP Morgan Asset Management.

He added that he knew of only one major institution and one much smaller shareholder that had told him they opposed the deal. In July, Standard Life Investments, which holds 2.97 percent of the company, rejected the offer as too cheap.

“I hope that the deal will succeed, but it’s impossible for me to say how shareholders will vote in three or four weeks time,” he said.


Tomkins reported adjusted operating profit of $295.5 million for the first six months of the year, beating the $89.8 million posted in the same period last year, and above the $290 million it forecast in mid-July. [ID:nLDE66I06K]

The company, which also makes bath tubs, said profits were boosted by a recovery in demand from car manufacturers for power transmission components and systems, increased demand for its aftermarket services and by industrial customers restocking.

Measures taken to restructure the business and cut costs over the last few years also helped profits, Tomkins said, but the company was wary of the outlook for the rest of the year.

“We believe that global economic uncertainty coupled with recent downward trends in some macro indicators is likely to impact negatively our end markets in the second half of 2010 compared to the first half,” Newlands said in a statement.

Tomkins full-year operating profit was forecast at $475 million on average, with a range of $361 million to $551 million, according to a Thomson Reuters I/B/E/S poll.

Shares in Tomkins, which have risen by 45 percent in the last month since the company received a takeover approach, were up 0.4 percent to 322.5 pence at 0732 GMT, below the 325 pence-a-share offer price.

(Editing by Kate Holton and David Cowell)

$1=.6318 Pound

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