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KKR tried to leapfrog the Viridor auction: report
Posted on Monday, 13 January 2020 14:52
Pennon Group was one of the top risers on the FTSE All-Share index by 12:31 today after the Telegraph reported over the weekend that early last year KKR attempted to pip other bidders to the post for Viridor.
Advisors for the environmental utility infrastructure company have only sounded out informal interest in a sale of the waste management arm from potential suitors at this time, sources told the newspaper.
However, Morgan Stanley and Barclays are in the process of setting up an official auction, which could fetch roughly GBP 4.00 billion.
Pennon and KKR declined to comment on the matter when contacted by the Telegraph.
Meanwhile Viridor told letsrecycle.com in a statement today that, with regards to the review initiated in September by its owner, it will “update the market as and when it is appropriate to do so”.
At the time, Pennon said it would evaluate its strategic focus, growth options and capital allocation given its strong financial performance and the operational progress of Viridor and South West Water.
In its half year results 2019-20 for the period ended 30th September 2019, the company said Viridor continues to deliver sustainable growth in UK recycling and residual waste management.
The business is contracted by more than 150 local authorities and major corporate clients, with 32,000 customers across the UK, according to its website.
Viridor also has the UK’s largest network of 300-plus recycling, energy recovery and landfill diversion facilities, with a waste collection service of more than 600 vehicles.
Zephyr, the M&A database published by Bureau van Dijk, shows 424 deals targeting the global waste management and remediation services segment have been announced since the beginning of 2019.
In terms of volume, companies based in China, the US and the UK were among the most targeted.
© Zephus Ltd