26th Oct 2015 07:50
LONDON (Alliance News) - APR Energy PLC Monday said it has reached a deal with a consortium of companies whereby it will be taken over in a GBP165.0 million deal.
The agreement follows on from the company and consortium opening talks about a potential takeover of APR Energy in early October. The transaction is being conducted through Apple Bidco Ltd, owned by Fairfax Financial Holdings Ltd, ACON Investments LLC and Albright Capital Management LLC.
Under the deal, APR Energy shareholders will be paid 175.0 pence per share in cash, which is a 88% premium to its closing price of 93.0 pence on October 2, the last day before talks were opened and a 69% premium to its average closing price of 104.0p in the three months ended last Friday.
In addition to the deal, the consortium has agreed to supply APR Energy with an additional USD200.0 million worth of funding, of which USD150.0 million will be used to prepay its outstanding loans. The other USD50.0 million will be used for working capital and transaction costs.
The consortium will need to get the support from shareholders equating to 90% of APR's total voting rights for the deal to go through. Following the offer becoming declared unconditional, Bidco intends to seek to delist APR Energy from the main market of the London Stock Exchange which will "eliminate the liquidity of the APR Energy shares for any remaining shareholders."
The APR Energy board has unanimously decided to recommend the takeover offer.
By Joshua Warner; [email protected]; @JoshAlliance
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