UK water and waste water treatment firm Severn Trent Plc (LON:SVT) said today it had turned down a conditional takeover proposal by Canada’s Borealis Infrastructure Management Inc, the Kuwait Investment Office and Universities Superannuation Scheme Ltd.
Yesterday, Severn Trent announced it had received an early-stage approach by the particular entities. Today, it had met with the consortium for the first time. However, the suitors have made an offer at just a modest premium to the target’s stock price prior to its announcement.
After consulting with its advisors, Severn Trent had determined that this proposal “completely fails to recognise the existing and potential value” of the company and for this reason it had rejected the offer, it explained.
Earlier this week, Magazine Financial News quoted sources as saying that Borealis and the Kuwait Investment Office could propose to pay between £22.50 ($34.24/€26.55) and £23.00 per share for Severn Trent, or around £5.3bn in total.