(Alliance News) - Applegreen PLC confirmed Thursday it is in advanced discussions with a consortium including B&J Holdings Ltd and Blackstone Infrastructure Partnersover a possible cash offer for the company at a price of EUR5.75 per share.
Shares in the Irish firm that operates a number of petrol stations in Ireland, the UK and the US jumped 43% in London on Thursday mid-morning to 507.00 pence.
B&J Holdings is a 41% shareholder in Applegreen and represents the holdings of Applegreen's founders, Robert Etchingham and Joseph Barrett.
"Should the transaction proceed, B&J Holdings would retain a significant equity stake in the xonsortium and Robert Etchingham and Joseph Barrett would maintain their current management positions as chief executive and chief operating officer respectively within the business," the company explained.
Applegreen noted the possible cash offer represents a premium of 48% to its closing price of EUR3.88 on Wednesday, and a 51% premium to its one-month volume weighted average share price of EUR3.82.
"The possible cash offer remains conditional on, amongst other things, the satisfactory completion of confirmatory due diligence by the consortium and the recommendation of the Independent board. The consortium reserves the right to waive any of these requirements," Applegreen said.
The board intends to recommend unanimously that Applegreen shareholders accept the offer.
"The independent board believes the possible cash offer, if effected, would represent a compelling opportunity for shareholders in Applegreen to realise their investment at an attractive premium to the prevailing share price," the company said.
Applegreen noted that whilst discussions are ongoing, there can be no certainty that a firm offer will be made for Applegreen by the consortium.
By Paul McGowan; paulmcgowan@alliancenews.com
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