Private equity offer
Aggreko in talks over £2bn bid from consortium
Aggreko is a supplier of temporary power
Shares in Scottish temporary power provider Aggreko rocketed after it confirmed it was in talks about a £2 billion-plus takeover offer from a private equity led consortium.
TDR Capital, which is in the process of buying the British supermarket chain Asda, and I Squared Capital, a Miami-based infrastructure fund have tabled an offer to the Glasgow company’s board.
The consortium’s offer of 880p a share was pitched at a substantial premium to the roughly-645p level at which Aggreko’s shares were trading on Friday afternoon.
Shares in FTSE 250 company closed at 848p, up 209p or 33% on the day.
In a statement to the stock market, Aggreko said: “The board of Aggreko plc notes the recent press speculation concerning Aggreko and Aggreko’s share price.
“TDR Capital LLP and I Squared Capital (US) LLC and its affiliates have made a series of proposals to the Group which has culminated in the Group entering into discussions with the Consortium in relation to a possible cash offer for Aggreko at a price of 880 pence per Aggreko ordinary share to be adjusted for any dividend declared or paid.
“Based on Aggreko’s closing share price yesterday, the Proposal would represent a 39% premium.”
In a trading update last month, Aggreko said it expected to deliver profit before tax for 2020 slightly ahead of the top end of previous guidance range of £80-100 million and for 2021 in the range £170-190m.
Full-year results are due on 1 March.
In early January it agreed a revised contract with the organising committee of the Tokyo Olympic and Paralympic Games expected to be worth around $315m, compared to an estimated $250m.
Former Barratt Developments CEO Mark Clare has joined as a non-executive director and is due to take over as chairman from Ken Hanna following the Annual General Meeting in April.
Aggreko was established in the Netherlands in 1962 and moved to Glasgow in 1973 becoming part of the Christian Salvesen haulage business in 1984 before being demerged and listing on the stock exchange in 1997.