(Alliance News) - Augean PLC suitor Eleia Ltd on Wednesday said more than 50% of shareholders in the waste management firm have backed its GBP341.2 million takeover offer.
Augean approved the bid by Eleia, a vehicle formed by investment funds managed by London-based Ancala Partners LLP and Toronto, Canada-headquartered Fiera Infrastructure Inc.
Eleia offered 325 pence per Augean share, valuing the AIM listing at GBP341.2 million. Augean shares were 17% higher at 334.05p each in London on Wednesday morning, giving a market capitalisation of just short of GBP351 million.
Eleia said it has received backing from Gresham House Strategic PLC, which has about a 5.6% stake in Augean.
The Augean suitor said it has also received "non-binding letters of intent" from just over 49% of other shareholders in the AIM stock. It means that in total, it has had support from just under 55% of Augean investors.
The Eleia offer is a 16% premium to Morgan Stanley Infrastructure Inc'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
Copyright 2021 Alliance News Limited. All Rights Reserved.
