GAS METER supplier Energy Assets has agreed to a takeover approach from a US infrastructure investor that values the Livingston-based business at almost £200 million.
The deal, struck with funds controlled by Alinda Capital Partners, would see shareholders in Energy Assets receive 685p in cash for each share they hold.
Although Alinda said it would carry out a detailed business review of Energy Assets following completion, it stressed that any chnages were likely to be minor. It intends to keep the business as a standalone operation and retain its existing locations and senior management team.
The £198m acquisition price represents a premium of about 40.4 per cent to Friday’s closing price for Energy Asset shares of 488p.
They jumped by 194p, or just under 40 per cent, yesterday to close at 682p.
If the deal goes through it would mean Energy Assets, which employs more than 200 people and installs and manages gas meters, has more than trebled in value since listing at 210p a share in 2012 when it became the first Scottish company to float on the main market of the London Stock Exchange for five years.
Chairman Chris Masters said yesterday: “Since the time of the IPO of Energy Assets, Energy Assets has successfully executed its strategy of generating high levels of revenue growth, broadening its activities and market reach and increasing profitability.”
He added that the purchase price will “enable shareholders to crystallise an immediate and certain value in cash” and “avoids exposure to the risks and uncertainties implicit in executing a forward-looking strategy”.
For the deal to go ahead, it must be approved by at least 75 per cent of investors in the company, which is led by chief executive Phil Bellamy-Lee.
Connecticut-based Alinda Capital Partners, which manages $9 billion (£6.4bn) of assets, said it has already received the backing of investors holding about 44.6 per cent of the firm’s shares.
Managing partner Chris Beale said: “Energy Assets is a strong company with a robust business model which we have followed for some time.
“We are committed to enhancing Energy Assets’ position as a leading independent operator during an important phase for the business as it invests in the roll-out of smart meters and to working with its customers, employees and management to continue the success of the company.”
Energy Assets’ largest shareholders include Australian group Macquarie Investments – part of the Macquarie Group which majority owned the business before it floated – Marlborough Fund Managers and Old Mutual Global Investors.
Energy Assets has been one of only a handful of Scottish firms to float on the main market in recent years including Edinburgh-based testing specialist Exova and Clydesdale Bank-owner CYBG.