Takeover decision

SMS board postpones vote on £1.3bn KKR offer

Smart Metering Systems
SMS’s board has recommended the deal

Shareholders in Smart Metering Systems are being given more time to consider the £1.3 billion takeover offer from US private equity firm Kohlberg Kravis Roberts.

The board of the Glasgow company has pushed back the deadline from 9 January to 22 January.

A meeting will take place at the offices of Hogan Lovells International in London. Should the deal be supported the company’s shares would be cancelled on 16 February.

The offer, which has an enterprise value of £1.4bn, was announced on 7 December and is unanimously recommended by the board.

However, Steve Timoney the Glasgow-born founder of SMS, and its former chief executive Alan Foy, have joined a long term shareholder to oppose the 955p per share cash offer.

Mr Timoney, a hotelier and basketball club owner who stands to make £51 million from the acquisition, together with Mr Foy and PrimeStone Capital, collectively control 23,827,659 ordinary shares representing approximately 17.8% of SMS’s issued share capital.

In a statement issued on 21 December they said they were “disappointed” with the offer which represented a 40.4% premium to the closing price of 680p on 6 December.

SMS, which employs about 1,500 staff, installs, owns and manages smart meters on behalf of energy companies, housebuilders, retailers and social housing providers. It also develops and operates battery energy systems to store clean energy as Britain aims to quadruple its storage capacity by 2030.



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