Aggreko shareholders vote through £2.3bn takeover bid
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.”
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.