Aggreko requires significant investment in clean technology and a step change in the pace of transformation said bidder
PLC’s () directors have agreed terms for a cash takeover from two private equity groups TDR and I Squared that values the mobile power generator supplier at £2.3bn.
The 880p per share price is in line with February’s announcement that talks were underway and ‘s board is recommending the offer, which is a 39% premium to the start of the bid period.
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Updates from recently have shown trading recovering from coronavirus disruption, while it has also picked up a US$315mln contract to power Tokyo’s Olympic games if they go ahead.
Ken Hanna, ’s chairman, said: “The leadership team set out a clear vision in November 2020 for how Aggreko can both grow profitably through the energy transition and achieve market-leading carbon reduction targets.
“This strategy was well received by our partners, our customers and investors, and I Squared Capital and TDR Capital are fully supportive.”
Rahmathulla of I Squared Capital added that to change to a net-zero emission business Aggreko requires significant investment in clean technology and a step-change in the pace of transformation to build on its market leadership.
TDR recently helped bankroll the £6.8bn acquisition of Asda from Walmart and this latest approach is part of increasing M&A activity from private equity groups.
Read More: Aggreko PLC board agrees £2.3bn private equity takeover