Smart Metering Systems PLC (AIM:SMS) (SMS) soared 41% to 960.19p after agreeing a bid approach from US private equity outfit Kohlberg Kravis Roberts (KKR).
The integrated energy infrastructure company said it had agreed a cash bid worth 965p per share, valuing the firm at around £1.3 billion on a fully diluted basis, implying an enterprise value of around £1.4 billion.
This is a 40.4% premium to Wednesday’s 680p closing price.
“The offer price represents a significant premium to the current share price and allows shareholders to realise immediate and attractive value for their shareholding,” the company said.
For its part, KKR said it believes that SMS is a business of high quality, with a best-in-class management team and long-term, contracted and inflation-protected cashflow streams.
KKR believes that SMS, under private ownership, will be able to accelerate its growth and continued transition from a metering provider and grid-scale battery storage operator to a fully integrated, end-to-end energy infrastructure company which owns, installs and manages carbon reduction assets.