London: Biffa says that it has reached agreement on a recommendation for the acquisition of the company by Wasteacquisitionco. The offer values Biffa at £1.2 billion.
The purchasing organisation represents a consortium of Montagu, Global Infrastructure Partners Funds and UCIL - the consortium being led by Montagu Private Equity and GIP.
Wasteacquisitionco is to pay £3.50 cash for each Biffa share, though shares went higher than the agreed price and reached 369.50 pence (8 Feb), on suggestions of another bidder’s interest. Biffa referred to third parties as still working on a potential bid(s).
The Biffa board made its recommendation for the acquisition as there was no certainty that a bid would come from elsewhere.
Biffa recommends £1.2 million takeover(Photo: Biffa)
There have been rumours that SUEZ may be interested in the company.
In April 2006, parent water company Severn Trent said that it was planning to demerge its waste management business Biffa and in September of that year the company decided its terms for demerger.
Montagu’s initial offer of £3.30 – made last year – was rejected by the Biffa board. At that time Montagu was in consortium with Hg Pooled Management, though later GIP stepped into the breach when Hg withdrew.
Montagu were also involved in the sale of Cory Environmental in March 2007, to a consortium of long term infrastructure investors consisting of ABN AMRO Global Infrastructure Fund, Finpro SGPS and Santander Private Equity, on behalf of Santander Infrastructure Funds I and II.