BRITISH INDIAN entrepreneur Deep Valecha-owned Regent Group will acquire building services group, TClarke, for £90.56 million, subject to regulatory approvals, a statement said.
Regent is currently an existing shareholder in TClarke, holding approximately 21.5 percent of the stake. Established in 1889, TClarke provided electricity to Windsor Castle and lit up the Shard in central London.
After more than 70 years on the stock market, TClarke is set to depart from stock trading. The company was an early adopter of encased wires to reduce the risk of fire.
Its shares have been listed on the London Stock Exchange shortly after the second World War.
Valecha, CEO of Regent, said, “TClarke is a business we have long admired since we started to invest in 2018. It is well run, has a strong culture helped by a commitment to a well-established apprentice scheme which offers career progression and a high degree of staff loyalty. Given our admiration for TClarke, as part of our plans, we would like TClarke to continue its business in the manner in which it has been conducted. We will support the management team in their ambitions to strengthen the balance sheet, and continue to grow the business.
"I am excited by the opportunities this new chapter presents for TClarke to pursue its long-term strategies to drive sustainable growth and innovation and explore new initiatives.”
An acquisition vehicle of Valecha will buy TClarke shares at 160p each, valuing the company at £90m. This purchase represents a 28 per cent premium over the closing share price of the company last week.
Valecha wholly owns the wider Regent Group, founded in 1995. The family-owned firm supplies natural gas, connections and metering services to small, medium-sized and large corporate businesses, throughout England, Scotland and Wales.
Regent, which saw strong revenue growth over the years, stands on the foundation laid by two generations of entrepreneurs - Nandlal Valecha and his son Deep.
Nandlal, who relocated to the UK from India, ran a textile import business for several years. Deep attended the London School of Economics before working with British Gas where he learnt the nuances of the energy market.
The father-son duo founded Regent Gas in London in 1995 with an initial investment of £30,000. They expanded the business with the core strategy of offering what the customers wanted rather than what solely benefitted their business.
Nandlal passed away in 2019 and Deep derived inspiration from his father to run the company which has continued to expand by ploughing its profit back into the business.
As the company grew, the family added water services to the business in 2016 to replicate their gas business model.
They created Regent Water - better known in the marketplace as Regent Utilities - by obtaining Ofwat and Water Industry Commission licences. The Valechas also run the Valecha Charitable Foundation where Deep and mother, Kumudini Valecha are trusees.
The latest Asian Rich List published by Asian Media Group valued Deep Valecha and family at £360 million as the business has strong investment portfolio and cash reserves.
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