Waste management company Biffa, has agreed to a £1.2 billion takeover offer from two private equity companies, Montagu and Global Infrastructure Partners (GIP).
UK-based Montagu and GlP are offering 350 pence per share, which values the company at £1.2bn.
Biffa non executive chairman Bob Davies said the offer recognises considerable value inherent in our market position and integrated business model, and I believe their investment plans will help Biffa maximise the opportunities presented by changing legislation to deliver growth into the medium term.
Montagu director Jason Gatenby, said Biffa was a market leading business with a great workforce in a sector we understand well and where we have a demonstrable track record of success.
The announcement is the latest twist in the battle for Biffa. In November 2007, Biffa announced that it had rejected an indicative proposal from Montagu and HgCapital. That was followed by a revised proposal of 350p a share which persuaded Biffa to open its books. In January, Montagu came back to say it was still interested in a possible offer, this time working with GIP.
Analysts believe that the changing nature of the waste industry is making it more attractive to private equity and waste infrastructure investors (Jan 7 2008, www.mrw.co.uk).