The move comes just a week after Shanks unveiled plans to sell off equity stakes in two of its PFI contracts (see letsrecycle.com story) and a month after the firm reported that its group revenue had declined in the first six months of 2009 compared to the same period the year before, due to “difficult market conditions”.
The company has a wide portfolio including waste treatment, mechanical biological treatment technologies and solid recovered fuel generation.
Shanks said that “after careful consideration and supportive discussions” with its two largest shareholders, the Board believed that a higher cash offer – of 150 pence per share or more – would deliver an appropriate value to shareholders. This would be equivalent to £595 million.
A Shanks spokesman told letsrecycle.com: “At 150 pence per share, the Board believes that it would represent appropriate shareholder value and that the Board would feel the need to engage with a potential offer.”
It is believed that the approach was made several weeks ago and, contrary to mainstream media reports, is the first such move by Carlyle.
One commentator claimed that the move was likely to lead to other suitors entering the market with regards to Shanks.
The Carlyle Group, which has headquarters in Washington D.C, is one of the largest private equity firms in the world, with the company claiming to have $87.6 billion (£53.6 billion) of assets under management. Of this, 22% of the company's investments are classed as being in the 'energy' sector.
Carlyle told letsrecycle.com that it was unable to comment on the approach at this stage.
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