Shares in Augean (AUG ) jumped after the firm confirmed to investors this morning that it has agreed to a new £341m buyout offer from Ancala Partners and Fiera Infrastructure.
The Group, which provides sustainable waste management solutions, said the deal made by the investment managers offered a “superior price” of 325p compared to another offer of 300p from Morgan Stanley Infrastructure which Augean had accepted earlier this month.
As a result of this morning’s offer, the Directors of Augean have urged shareholders to ‘take no action’ in relation to Morgan Stanley Infrastructure’s offer. To complete the new buyout offer, the two companies have created a special purpose acquisition company, or SPAC.
Augean said both Ancala Partners and Fiera Infrastructure are long term investors in the waste management sector. It noted that they have spent ‘significant time and resources’ in the sector, evaluating the hazardous waste management sector ‘and Augean in particular.’
It is anticipated that both groups will provide Augean with the necessary financial, technical and strategic support to thrive as a private company in the UK waste management sector.
Founded in 2004, Augean provides hazardous waste management services in the UK to offer “essential and responsible treatment and disposal solutions for hazardous materials.”
Shares in Augean have risen by over 50% in value since the beginning of the year. The stock jumped 16.67% higher this morning to 332.5p following the announcement of the offer.
Jim Meredith, Executive Chairman of Augean, said: "The Augean Board believes that Ancala and Fiera Instructure are well-respected as long-term investors in the infrastructure sector and will be able to support Augean's strategy of providing the highest level of customer service and safe operations in niche and highly regulated hazardous waste markets.”
Meredith added that: “As Ancala and Fiera Infrastructure intend to maintain the same strategy and footprint, we also believe that the acquisition is a good outcome for all Augean stakeholders, including our employees, our customers and the wider UK economy."
Commenting on the offer, Karen Dolenec, a Partner at Ancala Partners, stated:
"Augean provides essential and responsible hazardous waste management services to key private and governmental infrastructure operators. Ancala has been impressed by the high quality of the team and operations and is excited to support the Company in expanding its role in this critical part of an effective waste management ecosystem."
In a research note, Danni Hewson, a Financial Analyst at Broker AJ Bell said that the offer showed that there was no sign of the “feeding frenzy” on London-listed firms letting up.
In a note highlighted by City AM today, Hewson added: “This continuing global corporate raid suggests bidders still see a lot of untapped value in the UK market. The danger is that if it doesn’t let up soon London will be left looking like a bit of wasteland for stocks.”
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