Builder Carillion has made a recommended cash offer to buy energy-saving scheme operator Eaga for £306.5m as it looks to enter the energy efficiency market.
“Low carbon and its related energy efficiency markets present a compelling opportunity for growth for the group,” Carillion said in a statement on Friday.
“As one of the leading green support services businesses in the UK, Eaga is at the forefront of this market.”
Carillion said it would pay Eaga 118.79 pence per share, a premium of 29 per cent to the stock’s Thursday close, and 49 percent above Eaga’s closing price on February 2, when the offer was first made public.
Eaga shareholders can also retain the interim dividend of 1.21 pence per share, payable on 18 March 2011, for a total offer price of 120 pence.
The deal comes two weeks after Eaga, which has been hit by government spending cuts, posted first-half results below market expectations.
Also on Friday, Zenergy Power, which makes specialised wires and coils for the renewable-energy sector using superconductor technology, said it was looking for a buyer.