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Aggreko’s largest shareholder moves to block £2.3bn takeover

Aggreko will now turn focus to second largest shareholder

The takeover of Aggreko (LON:AGK), the temporary power supplier, seems more unlikely now as the FTSE 250 company’s largest shareholder hinted its intention to thwart the deal worth billions of pounds.

Sky News has reported that Liontrust Asset Management, whose stake in Aggreko amounts to 12%, will vote against the £2.3m deal.

If they do then the company’s 880p-a-share acquisition by a consortium comprising TDR Capital, the private equity firm, and Squared Capital, an infrastructure investor, could come in to doubt.

Aggreko supplies its equipment across industrial sectors, notably to large-scale events, including the World Cup, the Super Bowl and Glastonbury.

The Scottish-based company recently reported a yearly profit before tax of £102m on its revenue of £1.4bn. Eyes will now turn to the plans of Sprucegrove, whose stake amounts to 8%, meaning it is the second-largest shareholder. As of yesterday, its voting intention is unclear.

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Aggreko confirmed last month that it would recommend the deal to shareholders, with Ken Hanna, chairman, insisting that the price reflected its future growth prospects.

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