A consortium made up of investment managers Ancala Partners and Fiera Infrastructure has made a £341.2 million offer for Augean, raising the prospect of a bidding war for the hazardous waste treatment specialist.
The partners have created a special purpose acquisition company called Eleia Limited to proceed with the 325p per share offer.
Earlier this month, the infrastructure arm of American investment bank Morgan Stanley (MSIP) announced it had agreed to acquire Augean for nearly £315 million (see letsrecycle.com story).
However, in a statement published yesterday (24 August), Augean’s directors described Ancala Partners and Fiera Infrastructure’s bid as “compelling” and urged shareholders to “take no action” in relation to Morgan Stanley’s offer.
Jim Meredith, executive chairman of Augean, said: “The Augean board believes that Ancala and Fiera Instructure are well-respected as long-term investors in the infrastructure sector and will be able to support Augean’s strategy of providing the highest level of customer service and safe operations in niche and highly regulated hazardous waste markets.
“We recognise the increase in the price offered to Augean shareholders under the offer when compared with the MSIP offer and have accordingly recommended the offer to Augean shareholders.”
Formed in 2004, Wetherby-based Augean offers services including treatment, transfer, industrial services, landfill disposal, recovery and recycling. It operates at locations across the UK, from Avonmouth to Shetland.
Investment managers
Ancala is an independent infrastructure investment manager established in 2010. It says it has identified waste management as one of its “key target sectors”.
Karen Dolenec, a partner at Ancala, said: “Ancala has been impressed by the high quality of the team and operations and is excited to support the company in expanding its role in this critical part of an effective waste management ecosystem.”
“Ancala has been impressed by the high quality of the team and operations” – Karen Dolenc, Ancala
Fiera Infrastructure is a global mid-market, infrastructure investment manager headquartered in Toronto, Canada. With a presence in Toronto, London and New York, the company says it has invested in more than 39 assets across waste management, utilities, telecommunications, transportation, renewables and public-private partnerships. In the UK waste sector, it has already invested in Cory Group.
Alina Osorio, president of Fiera Infrastructure, said: “Fiera Infrastructure is excited to work alongside the management team at Augean to support the company in its next stage of growth.”
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Source: letsrecycle.com Waste Managment
