Aggreko deal in turmoil as top investor leads revolt

THE £2.3bn private equity takeover of Aggreko has been thrown into doubt after the power equipment provider’s biggest shareholder signalled opposition to the deal.

On the eve of a crucial deadline, Liontrust Asset Management voted against the sale, according to Sky News.

The bombshell decision, which is a rare show of defiance by an institutional investor, comes after critics warned that the takeover was the latest example of ‘pandemic plundering’.

Private equity groups I Squared Capital and TDR Capital have offered 880p per share for Aggreko, with the proposal backed by the board of the FTSE 250 company.

Shareholders vote on the deal today. But last night Liontrust was gearing up to vote against, with other investors thought to be contemplating opposition.

Liontrust is Aggreko’s largest shareholder with 12.2pc of shares. Its decision to defy a board recommendation is an unusual move for an institutional investor.

Aggreko’s 2020 profits almost cut in half to £103m. And when the takeover bid was revealed in February, its shares were already trading nearly 25pc below their value at the start of last year.

Ken Hanna, Aggreko’s chairman, has insisted the private equity offer is ‘an attractive price that fairly recognises Aggreko’s future prospects’. Last night Liontrust declined to comment.