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Biffa PLC on Tuesday backed a £1.3 billion takeover offer from private equity firm Energy Capital Partners LLC, an investor in the fields of energy transition, renewables and infrastructure.
ECP will pay 410 pence cash for each share in the High Wycombe, Buckinghamshire-based waste management firm, a 27% premium to its 323.90p closing price on Monday.
Biffa shares surged 28% to 407.40 pence each in London on Tuesday morning.
‘ECP is an experienced investor in environmental infrastructure and sustainability assets and offers a supportive environment to accelerate the group's further development and growth as a leading enabler of the circular economy,’ Biffa Chair Ken Lever said.
The acquisition price is, however, 7.9% lower than an initial 445p per share proposal made back in June. Lever explained: ‘It is the Biffa board's view that this offer represents a compelling opportunity, particularly in a weakening economic environment, for shareholders to realise, in cash and with certainty, the potential for future value creation.’
ECP expects the acquisition to complete in the fourth quarter of 2022 or the first quarter of 2023.
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