(Alliance News) - Applegreen PLC on Tuesday announced that it has agreed to a EUR718.1 million takeover offer made by the Causeway Consortium.
Applegreen operates a number of petrol stations in Ireland, the UK and the US.
The Causeway Consortium is a company owned by Blackstone Infrastructure Partners and B&J Holdings Ltd, which is wholly-owned by Applegreen founders Robert Etchingham and Joseph Barrett. B&J Holdings holds a 41% stake in Applegreen.
Under the acquisition's terms, Causeway will acquire Applegreen for EUR5.75 in cash - the same price touted earlier in December - being a 48% premium to the stock's closing price of EUR3.88 on December 9, the last business day before the publication of the possible offer announcement.
Shares in the Applegreen were up 3.0% at 520.00 pence on Tuesday in London. So far in 2020, Applegreen's shares have risen 15%.
The acquisition is conditional on gaining at least 75% in shareholder approval at both the court meeting and general meeting, as well as being sanctioned by the High Court of Ireland.
The new High Court term commences on January 11, 2021, however the acquisition has been given a long stop date of February 5. Applegreen expects the acquisition to be completed in March 2021.
So far, the consortium has obtained irrevocable undertakings from all of the Applegreen directors to vote in favour of the acquisition, which make up around 145,658 shares, reflecting 0.1% of the entire issued share capital. This give the bidders acceptances or ownership of 41% of the company.
"Over recent years, Applegreen has expanded operations to develop an enviable position as a leading roadside convenience retailer across Ireland, the UK and the US, combining a unique customer proposition with an effective business model to increase resilient non-fuel revenues," said Chair Daniel Kitchen.
"The business has significant scope to further expand its footprint, which we believe will be best achieved in the private arena where the group can benefit from the experience and capital of Blackstone as its partner, whilst maintaining the management and wider team which have driven the business forward to date," Kitchen added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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