At 6.00pm this evening, the legal mechanism which is part of the scheme of arrangement for the purchase of Biffa marks the ending of dealings in the company’s shares. Court approval was granted earlier this week for the sale to proceed.
Tomorrow morning at 7.30am the shares will be suspended on the London Stock Exchange and ownership formally pass to Bears Bidco Limited, the vehicle created by ECP to buy Biffa for a total of £1.3 billion. ECP is an American investment business based in New Jersey.
The agreement for Biffa to be sold to ECP was agreed on 27 September 2022. Documents then said the acquisition was at a premium of 28% to the closing price of 325 pence per Biffa share on 6 June 2022, which was the last business day prior to the start of the offer period.
Founded in 2005, ECP is a global investment firm with more than $26 billion in capital commitments. The firm notes that it has “multiple investments in the waste and recycling sectors” and that it adds: “In many cases, ECP has made significant follow-on investments after the initial formation or acquisition of a portfolio company”.
In September, Andrew Gilbert, ECP partner, said ECP is “excited to begin this long-term partnership with Biffa and its extremely talented employees and leadership. We intend for Biffa to remain focused on providing the high level of service to which its customers have become accustomed and look forward to supporting Biffa’s strategic initiatives, development, growth and industry leadership.”
According to the sale timetable, shareholders in Biffa will receive their payments around 9 February 2023.