New Ancala Offer Made For Dee Valley Water

A new offer has been made for Dee Valley Water, with Anacala returning with an improved offer to take the lead ahead of Severn Trent.

The new offer by Ancala Fornia Limited, who had tabled a bid last month, is a penny per share increase on the Severn Trent offer essentially matching the bid.

Severn Trent are still not saying their interested has ended, with an aftermarket statement noting: “The Board of Severn Trent notes the announcement by Ancala on 22 November 2016 of an increased recommended cash offer for Dee Valley.

“Severn Trent is considering its options and will make a further announcement in due course.

“Dee Valley shareholders are advised to take no action in respect of their shares at this stage.”

Details from Ancala note a line from the Dee Valley Directors who say they “believe that the terms of the Revised Ancala Bid are in the best interests of Dee Valley Shareholders as a whole and will unanimously recommend the Revised Ancala Bid.”

The statement from Ancala also adds, “Under the ownership of Ancala and Bidco, Dee Valley will continue to be a local company, run by staff situated locally within the community who will be incentivised to deliver excellent customer service to that community” and “Ancala and Bidco are long term investors.”

The bid has ‘received irrevocable undertakings’ of 39% of the vote carrying shares.

Updated: Wrexham’s MP Ian Lucas, who met with Severn Trent’s Chief Exec yesterday has told us tonight: “I am very pleased that Ancala have bid and that their bid has been accepted. It will retain Dee Valley Water as a separate local business and will preserve jobs.

“I believe it is in the best interests of our area. I hope that Severn Trent, who I told were not wanted, on Monday, will now withdraw.”

There has been reaction already from local AM and MP’s:

Delighted to hear Ancala have had a new offer accepted by the Dee Valley Water board & hope it ends uncertainty for a fantastic workforce.

— Ken Skates AM (@KenSkatesAM) November 22, 2016

Great news. Ancala has had further offer for Dee Valley Water accepted. Will keep business local and independent and preserve jobs.

— Ian Lucas (@IanCLucas) November 22, 2016

Pleased with the news about Dee Valley Water. V much in keeping with what the many local staff I've spoken to want https://t.co/DQ36fJBrE6

— Susan Elan Jones MP (@susanelanjones) November 22, 2016

A month ago the company had agreed a £71m deal with Ancala Fornia Limited, however a 10% better deal with Severn Trent was then tabled and looked like it was being accepted.

Much concern has been raised locally over the Severn Trent bid, with a petition also being created.

The issue was also raised in the Senedd earlier today – the video service from Cardiff does not allow embedding so you will have to click this link to watch the exchange between First Minister Carwyn Jones and Plaid Cymru Leader Leanne Wood where she challenged him over what contact he had.

Carwyn Jones said a deal, at that point involving Severn Trent, ‘would not be acceptable’ and spoke of a Government position and local AM involvement.

It appeared Leanne Wood was expecting something more substantial, saying she was ‘surprised you cant even say you have written a few letters about this given the concerns’ hoping ‘that todays question will push you into some kind of action’.

You can watch the short clip of the exchange here.

More shortly.