Aggreko faces £2 billion takeover bid from private equity consortium

Aggreko faces £2 billion takeover bid from private equity consortium

Scottish temporary power company Aggreko is facing a potential £2bn takeover bid from a private equity consortium.

TDR Capital and I Squared Capital have approached Aggreko’s board with an indicative bid over the last few days.

The bid is at a significant premium to the 645p share price that the Glasgow-based FTSE250 company was trading at earlier today. The 880p per share offer values Aggreko at £2bn.

TDR Capital is already involved in another major takeover, the £6.8bn deal for supermarket group Asda with the Lancashire-based Issa brothers.

The Aggreko board said in a statement: “The board of Aggreko plc notes the recent press speculation concerning Aggreko and Aggreko’s share price movement.

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“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.”

Discussions between the companies are continuing about the possibility of a bid.

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Aggreko recently upgraded its full-year profit forecast and said activity levels had recovered from the Covid-19 pandemic more strongly than anticipated.

The group’s contracts include one to supply power to the postponed Tokyo Olympic Games, which the organisers have vowed will go ahead this summer in spite of the pandemic.

Aggreko said last month the Olympics contract value would be $315m (£229m).

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