Private equity giant KKR has this morning agreed a £2bn takeover deal for FTSE 250 infrastructure investor John Laing.
The takeover deal, which was first mooted earlier this month, values the firm at 403p per share.
That represents a 27 per cent premium on the company’s closing price of 318p per share on 5 May, prior to KKR’s interest being announced.
Shares in John Laing rose 11.0 per cent to 400.8p after this morning’s announcement.
KKR said that it had an “attractive, established portfolio” of infrastructure assets across Europe, north and south America, and Australia and showed “significant” growth potential.
John Laing’s board have unanimously recommended that shareholders approve the deal.
Chairman Will Samuel said: “The Board believes that the offer from KKR represents an attractive and certain value in cash today for John Laing shareholders and reflects the high quality of the business, its people and future prospects, as well as providing a positive outcome for John Laing pensioners.
“KKR is a strong partner, providing long-term capital and global expertise to accelerate John Laing’s strategy, growing the development capacity and assets of John Laing and creating opportunities for our employees and broader stakeholders.
“This is particularly relevant in the current environment where there may be significant opportunities to invest in critical infrastructure which responds to public needs.”
Tara Davies, partner and co-head of European infrastructure at KKR, said: “John Laing has a strong market position and a forty-year track record of delivering major infrastructure projects.
“There is growing global demand for national infrastructure which delivers societal benefit and reflects technological advances and policy priorities across areas such as connectivity, renewable energy and transport.”