Biffa, demerged last year from Southern Trent, opens up books to Montagu Private, Hg Pooled Management private equity groups after firms raise offer for the waste management firm.
The revised offer now values the UK’s third biggest waste company at £1.23 billion, after Montagu and HG increased their headline value of their offer by 20 pence per share and promised to pay the dividend.
Hg and Montagu first approached Biffa in September but were declined.
They repeated their original offer of 330 pence at the end of November before increasing their offer to 350 pence on 7, December.
Company information
The offer price values the company at a 43 percent premium to the average share price in September, October and November. It also represents the firm’s share price on demerger from Severn Trent.
“On the basis of this proposal, the board has agreed to grant the potential offerers access to company information to allow them to complete their confirmatory due diligence,” Biffa said in a statement.
Talks between the parties are expected to continue over Christmas. They are likely to complete a deal in the New Year.
Shares in Biffa rose 20¾ pence to 338½ pence following the news that the bidders had begun due diligence.
December 20, 2007
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