(Alliance News) - Glasgow-based temporary power generation supplier Aggreko PLC on Friday announced it has accepted a GBP2.32 billion takeover offer from Albion Acquisitions Ltd.
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.
Under the acquisition's terms, Albion will acquire Aggreko for 880 pence per share in cash, reflecting a 2.0% discount to the company's closing price of 889.00 pence on Thursday, but a 39% premium to the closing price of 635p on February 4, the last day before the start of the offer period.
Shares in Aggreko were up 1.1% at 898.79 pence on Friday in London, giving a market capitalisation of GBP2.28 billion. As of Thursday's close, the company's shares had been 42% higher so far in 2021.
The acquisition is conditional on gaining at least 75% approval at the upcoming court and general meeting, as well as the scheme being sanctioned by the Court of Session at Edinburgh.
So far, Albion has obtained irrevocable acceptances from around 194,096 shares in Aggreko, reflecting 0.1% of the company's issued share capital.
The acquisition has a long stop date of December 31, 2021.
"The Aggreko board believes that the offer from I Squared Capital and TDR Capital represents an attractive price in cash that fairly recognises Aggreko's future prospects. We believe that the business, its people and customers will continue to be well supported with I Squared Capital and TDR Capital as shareholders bringing their expertise in energy and rental markets to support our existing strategy," said Chair Ken Hanna.
"The leadership team set out a clear vision in November 2020 for how Aggreko can both grow profitably through the energy transition and achieve market leading carbon reduction targets. This strategy was well received by our partners, our customers and investors, and I Squared Capital and TDR Capital are fully supportive," Hanna added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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