FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
National recycling and waste management provider, Biffa, has received a series of unsolicited and indicative takeover proposals from private equity firm, Energy Capital Partners (ECP), which values the company at £1.36 billion.
ECP’s proposal is in respect of a possible cash offer at a price of 445 pence per Biffa share.
The proposal is “subject to the satisfaction or waiver of a number of customary pre-conditions, including satisfactory completion of due diligence and the finalisation and documentation of financing for the transaction”.
Biffa has stated that the Proposal has been “carefully evaluated” by the Biffa Board and its financial adviser, Rothschild & Co, with “regard to the fundamental value of Biffa as well as the likely value to be created by the continued delivery of its strategy”.
The evaluation also considered the various risks facing the company including the current status of discussions between HMRC and Biffa regarding landfill tax compliance, which Biffa says it “strongly refutes”.
The Board of Biffa has concluded that should a firm offer be made on the same financial terms as the Proposal it would be “minded to recommend it” to Biffa shareholders, subject to the agreement of other customary terms and conditions.
Biffa has reported that it “continues to trade well, with underlying performance being in line with the Board’s expectations”. Biffa added: “Volumes have remained at expected levels and Biffa continues to mitigate inflationary headwinds. Good progress continues to be made in delivering key strategic priorities including the integration of recent acquisitions, ramping up production of food grade recycled plastics, and developing energy from waste projects.”
Biffa’s full year results which had been scheduled for announcement on 16 June 2022 will now be announced on 28 June 2022.
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