LONDON (Alliance News) - The investment fund hoping to take over Energy Assets Group PLC Wednesday said it has increased its offer price by almost 5.5% despite offering a significant premium with its original offer earlier this year.
Energy Assets Group accepted an offer for the company from Alinda Capital Partners back in April that was worth 685.0 pence per share - a 40% premium to the share price at the time - valuing Energy Assets at GBP198.0 million.
However, the pair have now agreed on a new price and Alinda said Wednesday that its cash offer has risen by almost 5.5% to 722.5 pence per share - pushing the valuation of Energy Assets Group up to GBP209.0 million.
That means the new offer now pushes up that original 40% premium to over 48%.
Energy Asset Group shares were trading up 7.2% to 716.0 pence per share on Wednesday - around 0.8% less than the new offer price.
The reason Alinda seems to have upped its offer price is to attract some Energy Asset Group shareholders that had pledged to reject the original offer as Alinda said shareholders with a combined stake of 21.2% that had pledged to reject the original offer have now pledged to accept the new offer.
Overall, Alinda now has irrevocable undertakings from Energy Asset Group shareholders with a combined stake of 79.5%, and the board of Energy Assets Group has supported the improved offer.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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