Hazardous waste services company Augean Plc (AIM:AUG) has recommended an increased takeover offer from Eleia Ltd of 372p a share in cash, or £390mln in total, following the conclusion of an auction for the company between rival bidders Eleia and Antwerp Management Ltd.
Eleia is backed by investment manager Ancala Partners, while Antwerp is backed by Morgan Stanley Infrastructure.
The auction had been set up by the Takeover Panel following the bidding war between Eleia and Antwerp, which began on 27 May with an approach to Augean by Antwerp.
On 30 July, Augean recommended a 280p cash offer from Antwerp, but withdrew its recommendation on 24 August in favour of a 325p bid from Eleia.
Antwerp then sweetened its offer to 340p, which received backing from Augean.
As a result of the bidding war, the Takover Panel set up an auction which concluded today with offers of 372p from Eleia and 361p from Antwerp.
Augean has now withdrawn its previous recommendation for the 340p bid from Antwerp.
Under the auction rules, Eleia and Antwerp are prohibited from further revising their bids unless a third party enters the frame with a firm intention to make an offer for Augean.
In a statement, Augean said the Eleia offer is superior to that of Antwerp’s and that its board unanimously recommends shareholders accept it.
Eleia’s bid is 3% higher that Antwerp’s offer and represents a premium of 49.7% to Augean’s closing price of 248.5p on 26 May, the day before the offer period began.
Eleia said it received binding irrevocable undertakings for 23.91% of Augean’s shares.
Augean shares were 1.09% higher at 371.50p midmorning.