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UPDATE 1-Aggreko shares surge on possible 2.25 bln pound buyout proposal

UPDATE 1-Aggreko shares surge on possible 2.25 bln pound buyout proposal

· 02/05/2021 10:22
UPDATE 1-Aggreko shares surge on possible 2.25 bln pound buyout proposal

Adds shares, detail, background

- Aggreko AGGK.L said on Friday it was in talks over a possible 2.25 billion pound ($3.09 billion) buyout proposal for the British equipment rental company from a consortium of private equity groups TDR Capital LLP and I Squared Capital, sending its shares soaring 38%.

The company, which has a contract to supply power equipment for Tokyo 2020 Olympic and Paralympic Games, said TDR and I Squared had made a series of proposals and it was now in talks with them over a possible cash offer of 880 pence per share.

Shares in the FTSE 250 firm hit 879 pence in response to the news, touching over a one-year high, but still below the possible offer price.

Aggreko had a market value of 1.62 billion pounds as of Thursday, according to Refinitiv Eikon data.

The possible 880-pence apiece offer represents a premium of about 39% to the stock's last close. Sky News first reported the possible offer on Friday.

The company, whose shares had lost around one-fourth of their value in 2020, said last month it expected 2020 profits to be at the higher end of its 80 million pounds to 100 million pounds forecast range.


($1 = 0.7289 pounds)


(Reporting by Yadarisa Shabong in Bengaluru;
Editing by Vinay Dwivedi)

((Yadarisa.Shabong@thomsonreuters.com; Twitter: https://twitter.com/Yadarisa; +919742735150;))