(Alliance News) - Aggreko PLC's bumper GBP2.3 billion takeover could be in doubt after its largest shareholder looks set to oppose the deal, Sky News reported Wednesday night.
Sky News said that Liontrust Asset Management PLC, which holds a 12% stake in Aggreko, has decided to vote against the deal.
Several other shareholders are said to have doubts about the price of the deal, Sky suggested.
Focus will now be on Sprucegrove, the second-largest shareholder, which owns roughly 8% of Aggreko, although its voting decision was unclear on Wednesday.
The deadline for investors to decide is Thursday. The deal is structured as a scheme of arrangement, meaning it requires 75% of voting shareholders to back it in order for it to complete.
https://news.sky.com/story/2-3bn-aggreko-takeover-in-doubt-as-liontrust-rebels-against-board-12282833
Shares in Aggreko closed at 870.50 pence in London on Wednesday.
In early March, the FTSE 250 temporary power generation supplier agreed to the GBP2.32 billion takeover offer from Albion Acquisitions. Under the acquisition's terms, Albion will acquire Aggreko for 880 pence per share in cash, reflecting a 39% premium to the closing price of 635p on February 4, the last day before the start of the offer period.
Albion Acquisitions is a company newly formed by funds managed by Miami-based private equity firm I Squared Capital Advisors US LLC and investment funds managed by London-based private equity firm TDR Capital LLP.
By Paul McGowan; paulmcgowan@alliancenews.com
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