Dee Valley Water Agrees To £71m Takeover
The local water supply company Dee Valley Water has agreed a deal that will see a takeover valuing the operation at £71.2 million.
In a statement issued this morning the boards of directors of Ancala Fornia Limited and Dee Valley Group PLC said they are “pleased to announce that they have reached agreement on the terms of a recommended cash acquisition of Dee Valley by Bidco, an investment vehicle indirectly controlled by Ancala”.
Under the terms of the purchase, Dee Valley’s Ordinary Shareholders will receive 1,550 pence in cash for each Voting Ordinary Share and 1,455 pence in cash for each Non-Voting Ordinary Share, which values the existing issued ordinary share capital of Dee Valley at approximately £71.3 million.
The statement explains, “Bidco is a newly incorporated company established under the laws of England and Wales for the purposes of the Acquisition. Bidco is indirectly controlled by Ancala. Ancala is an independent infrastructure investment manager with a focus on investing in core mid-market infrastructure assets in the UK. Ancala’s current investments include a natural gas and LPG distribution and supply business, a portfolio of solar sites and a developer, owner and operator of hydro power plants. Ancala has over £650 million of funds under management.”
Commenting on the Acquisition, Jon Schofield, Chairman of Dee Valley, said: “The Board of Dee Valley has reached an agreement on the terms of a recommended acquisition of Dee Valley by Bidco. We believe that the Acquisition provides attractive value and certainty to Dee Valley Shareholders.”
Commenting on the Acquisition, Ian Plenderleith, Chief Executive of Dee Valley, said: “The Board of Dee Valley believes that Ancala is well-respected as a long-term UK investor in the infrastructure sector and will be able to support Dee Valley’s strategy of providing the highest level of customer service and value for money.
“As Ancala plans to continue with Dee Valley as the local water company, providing all aspects of the business from our current sites in Wrexham and Chester, we believe that the Acquisition is a good outcome for all Dee Valley stakeholders, including our employees, our customers and the wider regional economy in the Dee Valley.”
Spence Clunie, Managing Partner of Ancala, added: “Ancala makes long term investments in stable, mid-market sized infrastructure assets in the UK on behalf of UK pension plans. Ancala views Dee Valley as a well-run and efficient water-only company that fits with the investment characteristics of Ancala’s mandate.
“Under the chairmanship of Jon Schofield and since the appointment of CEO Ian Plenderleith, the business has made impressive improvements in financial performance and customer care while ensuring that customer charges are the fourth lowest in England and Wales. Dee Valley has engaged with Ofwat and the DWI in developing a deliverable business plan which will increase security of water supply to its 125,000 customers while also laying solid foundations for further future improvements in business performance and customer care.
“We look forward to supporting Jon and Ian with delivery of their future plans which will benefit all stakeholders.”
In the latest financial results Dee Valley Water revenue was was £23.1 million (2015: £24.6 million) and profit from operations £6.6 million (2015: £7.5 million).
Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email News@Wrexham.com