Aggreko : shareholders vote through £2.3bn takeover bid
April 26, 2021 at 11:11 am EDT
Share
Aggreko shareholders have waved through the multi-billion pound takeover by private equity firms TDR Capital and I Squared Capital.
In a statement the FTSE 250 firm said the deal had passed by the majority of scheme shareholders at both its court and general meetings held earlier today.
It comes just a month after Aggreko said it backed the £2.3bn bid with chairman Ken Hanna adding the offer was set at an “attractive price in cash that fairly recognises Aggreko’s future prospects.”
Read more: £2.3bn Aggreko takeover ‘in doubt’ after shareholder revolt
At the time the offer price of 880 pence per share represented a premium of around 39 per cent to its 4 February share price.
Shares in the firm jumped 1.1 per cent on the news this afternoon.
The bid by Albion Acquisitions, a newly formed company owned by funds managed by I Squared Capital and TDR Capital, comes at an opportune time.
The UK rental provider has been hit hard by the pandemic as demand for loading tools and rental power equipment nosedived.
Aggreko’s annual profit plunged 50 per cent and nearly a quarter of its market value vanished.
The company has contracts to supply power to large events like the Olympic Games in Tokyo, which organisers say will go ahead this summer despite the pandemic, and Glastonbury Festival which has been cancelled for the second year in a row.
The deal is one of a number of London-listed companies to be taken over by foreign or private equity bidders in recent months. Other targets have included insurance firm RSA and gambling giant William Hill.
The post Aggreko shareholders vote through £2.3bn takeover bid appeared first on CityAM.
Aggreko plc is a United Kingdom-based company, which is a provider of modular, mobile power and related solutions. The Company's segments include Power Solutions and Rental Solutions. The Power Solutions segment provides solutions for power requirements. The Power Solutions segment has two businesses: utility and industrial. The Industrial business operates in emerging markets to develop solutions and then rent its equipment for the customers to operate themselves. The Utility business also serves emerging markets, acting as a power provider, installing and operating modular, mobile power plants. The Rental Solutions segment is a transactional business that offers power adjacencies, such as heating, cooling, oil-free air and load-banks. The Company focuses on a range of sectors, including Utilities, oil and gas, Petrochemical and refining, Building services and construction, Events, Manufacturing and Mining.