Friday 5 March 2021 7:26 am

Aggreko backs £2.3bn takeover bid from private equity firms

UK equipment rental company Aggreko said this morning it endorses a £2.32bn buyout offer from private equity firms TDR Capital LLP and I Squared Capital.

The company said the offer of 880p per share represents a premium of about 39 per cent to its 4 February share price. No more details were announced.

Chairman Ken Hanna said in a statement that “the Aggreko board believes that the offer … represents an attractive price in cash that fairly recognises Aggreko’s future prospects.”

Read more: London Stock Exchange profit up despite ‘unprecedented challenge’ of Covid-19

The coronavirus has hit the Glasgow-based company hard, as Aggreko looks back on a difficult year.

As a result of the pandemic, demand for the company’s loading tools and rental power equipment has nosedived. Aggreko’s annual profit was down by 50 per cent and nearly a quarter of its market value vanished.

Peel Hunt analysts said this morning they do not foresee a competing or higher offer despite some recent speculation as TDR Capital has “a strong record in this sector.”

Read more: TDR Capital makes £2bn offer for Glastonbury power supplier Aggreko