(Alliance News) - Shares in Augean PLC surged on Wednesday, after the waste management firm backed a takeover bid by a pair of investors, fighting off interest from Morgan Stanley Infrastructure Inc.
Eleia Ltd, formed by investment funds managed by London-based Ancala Partners LLP and Toronto, Canada-headquartered Fiera Infrastructure Inc, have offered 325 pence per Augean share, valuing the AIM listing at GBP341.2 million.
Augean shares were 17% higher at 333.13p each in London on Wednesday morning, giving a market capitalisation of just short of GBP350 million.
The Eleia offer is a 16% premium to Morgan Stanley Infrastructure's 280p per share bid. It also is 31% higher than Augean's closing share price of 248.5p on May 26, the day before it received interest from Morgan Stanley Infrastructure.
Augean said on Wednesday: "The terms of the offer represent an attractive premium for Augean shareholders over the terms of the Morgan Stanley Infrastructure offer and accordingly the Augean directors urge Augean shareholders to take no action in respect of the Morgan Stanley Infrastructure offer."
Ancala is focused on investment in infrastructure businesses in Europe. Its assets include Liverpool's John Lennon Airport, a portfolio of UK solar assets and water distribution firm Portsmouth Water.
Among Fiera's assets is London-based water and sewage firm Thames Water and the Wightlink ferry operator in the Isle of Wight, England.
By Eric Cunha; ericcunha@alliancenews.com
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