The £4.2 billion sale of Viridor to Planets UK Bidco Limited has moved a step closer after Pennon Group shareholders approved the deal at a general meeting this morning (28 May).
The deal remains on track to be completed in “early summer 2020” after it also received approval from the European Commission under the EU Merger Regulations on 8 May.
Pennon, Viridor’s parent company, said today that the remaining condition to the sale relates to the “release of certain guarantees and other obligations provided by Pennon in favour of Viridor”.
Pennon, which also owns South West Water, announced in March that Planets UK Bidco, a newly formed company, would be buying its waste arm (see letsrecycle.com story).
The company had been established by funds which are advised by Kohlberg Kravis Roberts & Co LP (KKR), which reportedly had a bid for the company turned down last year (see letsrecycle.com story).
At the meeting this morning, 300,163,886 votes were submitted in favour of the sale, accounting for 99.85%, Pennon said.
The deal “continues to make good progress such that completion of the Disposal is expected take place in early summer 2020.”
Pennon said a further announcement will be made upon completion of the sale and receipt of the £3.7 billion net cash proceeds.