Power equipment supplier Aggreko has accepted a £2.3bn takeover by a pair of private equity firms.
The company told investors today that it has agreed a deal with I Squared Capital and TDR Capital, following earlier discussions.
The private equity firms agreed the offer worth 880p per share, representing a 39% premium on Aggreko’s share price on 4 February.
Chairman Ken Hanna said the board believes the offer “represents an attractive price in cash" that fairly recognises Aggreko’s future prospects.
“Aggreko is a great company and the actions that we have taken in the last few years, both strategically and financially, have positioned the company well to navigate the market challenges and look to the future as a leader in the energy transition,” he added.
“I am proud to have been chair of Aggreko for the last nine years and it has been a pleasure to work with so many dedicated individuals who have made Aggreko a leader in the field of temporary power solutions.
“For now, it is business as usual, and I thank all our people for their continued dedication and hard work.”
The Glasgow-based company, which supplies temporary power generators, has seen trading severely affected by the coronavirus pandemic.
On Monday, it reported that pre-tax profits were cut by almost half last year to £103m.
Aggreko has blamed coronavirus, low oil prices and the acceleration toward lower carbon technologies for a 15% drop in revenue to £1.4bn.
The takeover will be need at least 75% approval from shareholders at its forthcoming general meeting and is expected to complete in the summer if it receives the go-ahead.
Shares in Aggreko were 1.2% higher at 900p in early trading this morning.
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