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SITA loses interest in bid for rivals Biffa

SITA loses interest in bid for rivals Biffa

SITA UK has pulled out of its bid for rival waste management giant Biffa plc, leaving the way clear for an acquisition by the consortium WasteAcquisitionco Ltd.

The Biffa Board is now not aware of any third parties who are working towards making such a competing offer.

 
Biffa directors

Biffa shares dropped more than 6% this morning immediately after the company's board of directors announced that SITA's parent company Suez and potential partner Terra Firmer were no longer interested in making an offer.

It explained that Suez and Terra Firma had been given the same access to Biffa's company books as WasteAcquistionco, a consortium including equity groups Montagu and Global Infrastructure Partners (GIP).

And, Biffa's directors confirmed that there are now no rival bidders seeking to make an acquisition, recommending that shareholders vote in favour of the £1.2 billion Montagu-led bid.

Shareholders are to meet on March 12 at Chartered Accountants' Hall in central London to vote on the bid.

The Biffa directors said today: “The Biffa Board has now been informed by those third parties that they are no longer working towards making a competing offer for Biffa. As a consequence, the Biffa Board is now not aware of any third parties who are working towards making such a competing offer.

“Accordingly, the Biffa Board reiterates its unanimous recommendation that shareholders vote in favour of the resolutions, concerning the proposed acquisition by Bidco and related scheme of arrangement, to be proposed at the extraordinary general meeting of Biffa and the meeting of shareholders arranged by the court respectively,” it said.

Biffa's shares dropped 22.5p to 345.5p in this morning's trading. WasteAcquisitionco is offering 350 pence per share for the company.

 

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