UK water treatment firm Severn Trent Plc (LON:SVT) said its board of directors have turned down the increased per-conditional offer of £22.00 ($34.15/€25.89) per share in cash by the Borealis Infrastructure Management Inc-led consortium, named LongRiver Partners.
The bidding group, which also includes the Kuwait Investment Office and the UK’s Universities Superannuation Scheme Ltd, made the proposal on Friday after the target had previously rebuffed its £21.25 per share revised proposal.
According to the target’s board, the latest offer does not reflect the company’s value and does not recognise its future potential. The company added that it was ready to engage in deeper discussions if the suitor made an adequate proposal.
LongRiver’s most recent offer, which is subject to the successful completion of due diligence and the recommendation by the target’s board, assumes that Severn Trent’s already-announced final dividend of £0.4551 apiece is not paid to stockholders. It values the target at £5.3bn, the buyers have said. The consortium has a deadline until 11 June to submit a firm bid.
Rothschild Inc, Citigroup Global Markets Limited, Barclays Bank Plc and Morgan Stanley & Co International plc act as advisors to Severn Trent.