Biffa targeted by buyout firm

Archiv – Biffa Plc, the UK landfill operator and trash collector, says it’s prepared to accept a proposed 1.22 billion-pound (US$2.46 billion) takeover from Montagu Private Equity and HgCapital.United Kingdom | Biffa Plc, the UK landfill operator and trash collector, says it’s prepared to accept a proposed 1.22 billion-pound (US$2.46 billion) takeover from Montagu Private Equity and HgCapital.
The board agreed to give the buyers access to company information after buyout investors Montagu and HgCapital raised their proposal to 350 pence a share, Biffa says. The High Wycombe, England-based utility earlier this month rejected a bid of 1.15 billion pounds from the two companies, saying it was too low.
Buyout firms have targeted utilities because of their steady revenue, while the waste industry is becoming more profitable as governments promote recycling and restrict landfill sites.
Shareholders of Biffa will receive an interim dividend of 2.3 pence a share, payable on Feb. 1, the utility said today. Biffa is being advised by Citigroup Global Markets Ltd. and JPMorgan Cazenove Ltd., it says.