Vote on knife-edge
Aggreko takeover in doubt as Liontrust opposes deal
Aggreko provides power at events and projects
Temporary power company Aggreko’s £2.3 billion takeover by private equity firms could be in doubt, according to sources close to the deal.
Its biggest shareholder Liontrust Asset Management is planning to oppose the deal, Sky News reported.
Liontrust Asset Management holds 12% stake in Glasgow-based Aggreko, and is expected to vote against the acquisition by private equity firms TDR Capital, based in London, and I Squared Capital which operates out of Miami.
Sprucegrove, the second-largest shareholder in Aggreko with about 8% of the company, is yet to make its voting intentions clear.
The deadline for investors to decide is Thursday. The deal is structured as a scheme of arrangement, meaning it requires 75% of voting shareholders to back it in order for it to complete.
The deal was announced on 5 March and despite being unanimously recommended by the Aggreko board the shares rose on the day to 905p, significantly above the 880p offer price, indicating that a rival bid may appear.
Neither party offered any comment on the Liontrust’s reported position.