Smart meter company Energy Assets Group set for takeover
A fast-growing gas metering company based in West Lothian is set to be taken over by an infrastructure investment fund for nearly £200m.
The board of Energy Assets Group has agreed to recommend a bid by a shell company set up by Alinda Funds.
Other investment funds which currently hold 25% of Energy Asset shares have already committed to support the bid.
It will need the votes from 75% of shareholdings if the deal is to be approved.
The agreement between Alinda and the directors values the company at £198m.
It floated on the London Stock Exchange in 2012, with a market valuation of £57m.
The bid price represents a market capital value more than 40% higher than the recent share price.
Its valuation is approximately 14 times pre-tax, pre-interest earnings in the company's most recent financial results.
The Livingston-based company installs and manages meters for gas and electricity.
It is in a fast-growing market, as the UK government requires a roll-out of smart meters throughout the next few years.
Energy Assets is one of the leading companies contracted by the big utilities to provide that service.
Alinda Capital is an infrastructure fund with offices in Connecticut, Houston, London and Dusseldorf.