Equipment rental company Aggreko said on Friday it was recommending a 2.32 billion pound ($3.22 billion) buyout offer from private equity firms TDR Capital LLP and I Squared Capital.
Adds chairman comment, analyst comment, details on deal and background
March 5 (Reuters) - Equipment rental company Aggreko AGGK.L said on Friday it was recommending a 2.32 billion pound ($3.22 billion) buyout offer from private equity firms TDR Capital LLP and I Squared Capital.
The British company said the offer of 880 pence per share represents a premium of about 39% to its shares closing price on Feb. 4, a day before the offer was first tabled.
Demand for Aggrekos rental power and loading equipment has dipped due to the coronavirus-driven cancellation of public events, halving the companys annual profit and wiping a quarter of its market value in 2020.
The Aggreko board believes that the offer ... represents an attractive price in cash that fairly recognises Aggrekos future prospects, Chairman Ken Hanna said.
Under UK takeover rules, the consortium of TDR Capital and I Squared Capital had until March 5 to announce a definite offer for Glasgow, Scotland-based Aggreko.
The private equity firms made the offer for Aggreko, which has a contract to supply power equipment for Tokyo Olympic and Paralympic Games, under a newly formed firm called Albion Acquisitions.
Peel Hunt analysts said they do not foresee a competing or higher offer despite some recent speculation as TDR Capital has a strong record in this sector.
($1 = 0.7206 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Aditya Soni)
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