Aggreko approached about potential takeover – Sky News By Investing.com

By Samuel Indyk

Investing.com – Aggreko (LON:AGGK), a Glasgow-based constituent of the FTSE 250, has been approached about a potential takeover according to Sky News. The company, which supplies temporary power equipment had a market capitalisation of approximately £1.6B before the story broke and a potential takeover is expected at a “substantial premium” to that valuation. Sky News City Editor Mark Kleinman broke the news on Twitter.

The potential bidders are reported to be a consortium consisting of TDR Capital and infrastructure fund I Squared Capital.

There is no certainty a deal will take place, but Aggreko shares spiked higher on the news. At pixel time, shares are up over 33% to £8.50 after trading at £6.50 before the news had broken.

Aggreko has operations worldwide and has provided temporary power and temperature control for many large-scale events such as the Beijing and London Olympic Games, and the Glasgow Commonwealth Games. The company will be hoping that Tokyo 2020 Olympics go ahead this year after they won an initial $200mln contract to provide equipment for the Games before they were postponed last year due to Covid-19.

“A postponement is much better than a cancellation,” Aggreko Managing Director Robert Wells said at the time the Games were postponed. The company had planned a team of 500-plus staff and contractors in the run up and during the games to make sure everything ran smoothly.