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ContourGlobal PLC on Tuesday said it has agreed to a £1.75 billion takeover offer from US private equity firm Kohlberg Kravis Roberts & Co LP.
Cretaceous Bidco Ltd, a newly formed company wholly-owned by New York-based KKR, is offering 263.6 pence in cash per ContourGlobal share. The FTSE 250 stock was up 32% at 256.00p each on Tuesday afternoon in London.
Shareholders also will receive the first-quarter dividend of 4.0128p per share that ContourGlobal has already declared.
ContourGlobal is an operator of contracted wholesale power generation businesses. The KKR offer gives the company a total enterprise value of about $6.14 billion, when including debt.
ContourGlobal Chair Craig Huff said the KKR offer will ‘provide an opportunity for all shareholders to crystallise their investment in ContourGlobal at an attractive price’.
The board unanimously recommended the KKR offer to shareholders. KKR also has received acceptance for its offer from ContourGlobal's largest shareholder, Reservoir Capital Group LLC, for its 71.4% stake. In total, KKR said it already has acceptances for the offer representing 72.8% of ContourGlobal shares.
‘The board of ContourGlobal welcomes KKR's intention to provide capital and operational expertise to support ContourGlobal's strategy, including accelerating investments in the energy transition,’ Huff added.
KKR Director Ryan Miller said: ‘As a long-term global investor in critical energy infrastructure, KKR will work with ContourGlobal's management team and provide the capital needed to expand its portfolio of assets, building on ContourGlobal's leading global footprint and operational track record.’
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