The sale to Terra Firma is subject to shareholder approval, and has also agreed a deal with Kelda, which is to receive 143.6m from the sale of its 45.5% stake in WRG.
The proposal received the unanimous recommendation of the WRG Board and if given the go-ahead by shareholders would see WRG becoming a private company controlled by Terra Firma.
Commenting on the proposal, Guy Hands of Terra Firma Capital Partners said: “We are delighted that this period of uncertainty for WRG has come to an end. Terra Firma will ensure that Waste Recycling Group benefits from the greatest possible operational and strategic focus, positioning it as a leader in the UK waste management market. We believe that this focus will be good news for WRG and all of its stakeholders, notably its employees and customers.”
The deal is based on a consideration of 267.5 pence in cash per share of WRG, and including the company's debts could see 530.9 million changing hands.
The largest landfill operator in the UK, the WRG Group’s turnover was 302.5 million in the year ending December 2002.
Terra Firma Investments is advised by Terra Firma Capital Partners Limited, which is led by Guy Hands, with a team of approximately 50 experienced professionals. The firm had been in talks over the sale for some months (see letsrecycle.com story).
James Newman, Chairman of WRG, said: “The proposal is in the best interests of shareholders and provides an immediate and certain opportunity for all shareholders to realise their investments in cash at a significant premium to the share price in the period before WRG announced that it was in talks.”
Kelda, which owns Yorkshire Water, has said it plans to return up to 74m of its 143.6m windfall to shareholders by means of a share buyback programme.
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