(Alliance News) - The UK Takeover Panel early Thursday declared the auction for waste removal company Augean PLC over, with the consortium of London-based Ancala Partners LLP and Toronto-headquartered Fiera Infrastructure Inc as the winner.
Ancala and Fiera's vehicle Eleia bid 372 pence per Augean share, topping the 361p offered by Morgan Stanley Infrastructure Inc's bid vehicle Antwerp Management Ltd. Both offers were all in cash. Prior to the auction, MSIP had offer the most, at 340p per share, versus 325p from Eleia.
Augean shares were quoted at 375.00p early Thursday, up 2.0% and above the winning bid.
Eleia said the Augean board will unanimously recommend its offer to shareholders.
The offer values the Walton, England-based hazardous waste treatment and disposal company at GBP390 million. It is a 50% premium to the company's stock price in late May before the takeover offers started rolling in.
Under the auction rules, neither bidder can increase its offer again, unless an entirely new bidder were to enter the fray. As a result, MSIP said on Thursday it expects its offer to lapse on October 1.
On Wednesday, Eleia and Antwerp Management each said they had entered compensation agreements with a concert party of Augean shareholders representing a 23.9% stake. The concert party includes London-listed North Atlantic Smaller Cos Investment Trust PLC and Oryx International Growth Fund Ltd.
As part of the auction procedure set out by the UK Takeover Panel, the NASCIT and Oryx agreed to compensate the losing bidder for its costs, so this now will be MSIP.
By Tom Waite; thomaslwaite@alliancenews.com
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