A private equity consortium has approached Aggreko, the FTSE-250 temporary power supplier, about a potential £2bn takeover deal.
Sky News understands that TDR Capital, which is in the process of buying the British supermarket chain Asda, and I Squared Capital, an infrastructure fund, have tabled an indicative proposal to Aggreko’s board in recent days.
The consortium’s bid was pitched at a substantial premium to the roughly-645p level at which Aggreko’s shares were trading earlier on Friday afternoon.
The offer of 880p-a-share values the business at around £2bn, according to analysts.
In a statement following enquiries from Sky News, Aggreko said: “The board of Aggreko plc notes the recent press speculation concerning Aggreko and Aggreko’s share price movement.
“TDR Capital LLP and I Squared Capital (US) LLC and its affiliates have made a series of proposals to the Group which has culminated in the Group entering into discussions with the Consortium in relation to a possible cash offer for Aggreko at a price of 880 pence per Aggreko ordinary share to be adjusted for any dividend declared or paid.
“Based on Aggreko’s closing share price yesterday, the Proposal would represent a 39% premium.”
The company said discussions were ongoing.
“There can be no certainty either that an offer will be made or as to the terms on which any offer might be made.”
If it progresses to a deal, it would be the latest in a string of listed UK companies to be taken over by private equity firms in recent months as valuations have fluctuated amid volatile markets.
Aggreko is chaired by Ken Hanna, a City veteran, and recently upgraded its full-year profit forecast, saying activity levels had recovered more strongly than anticipated.
Aggreko said this month that the Olympics contract value would be $315m (£229m).
TDR declined to comment, while I Squared could not be reached.