US firm ups Energy Assets bid

THE US firm bidding to buy Livingston-based gas metering firm Energy Assets Group has sweetened its takeover offer in a move which has won over a number of shareholders who had argued the original price undervalued the business.

Picture: Energy Assets Group

In April, infrastructure investor Alinda Capital Partners made a £198 million approach for Energy Assets that was unanimously recommended by its board.

But a number of major shareholders, with a combined holding of more than 22 per cent, later said that the proposed acquisition price of 685p a share did not represent a “true reflection of the fundamental value of the company”.

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An investor meeting to vote on the offer had been postponed following the statement by the shareholders.

Yesterday Alinda said it had now upped its offer to £209m or 722.5p a share. Shareholders including US-based Oakcliff Capital Partners who had signalled their intention to vote against the proposal, have now said they will support the improved offer. Alinda yesterday said it now has backing from holders of about 79.5 per cent of the shares.

Earlier this week the firm said it was “on track to deliver another year of strong operating and financial performance” after a jump in revenues and profits for the year to 31 March. The Livingston-based firm posted a 25 per cent jump in total revenue to £45.3m, while profit before tax and exceptional items grew by 20 per cent to £10.7m.
Energy Assets has more than trebled in value since listing in 2012 when it became the first Scottish company to float on the main market of the London Stock Exchange for five years.

Shares rose by 7.6 per cent, or 51p yesterday, to close at 719p.