Aggreko confirms £2.2bn consortium takeover talks

Shares of Glasgow-based mobile power giant Aggreko plc rose about 34% on Friday afternoon to about £8.50 after it confirmed it is discussions with a consortium that includes TDR Capital LLP and I Squared Capital (US) LLC in relation to a possible cash offer for Aggreko at £8.80 per share worth about £2.25 billion.

“The board of Aggreko plc notes the recent press speculation concerning Aggreko and Aggreko’s share price movement,” said the Glasgow firm.

“TDR Capital LLP and I Squared Capital (US) LLC and its affiliates (the ‘Consortium’) 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 Aggreko and the consortium are ongoing.

“There can be no certainty either that an offer will be made or as to the terms on which any offer might be made.

“This announcement has been made without the consent of the consortium.

“A further announcement will be made if and when appropriate.

“In accordance with Rule 2.6(a) of the Code, the Consortium is required, by not later than 5:00 p.m. (UK time) on 5 March 2021, to either announce a firm intention to make an offer for Aggreko in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

“This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.”