Smart Metering Systems PLC on Thursday said it has agreed on the terms of an all-cash private equity acquisition that values it at approximately GBP1.4 billion.
SMS said each of its shareholders will be entitled to receive 955p in cash per share, under the terms of the acquisition. The offer values the firm’s entire share capital at approximately GBP1.3 billion, which SMS said implies an enterprise value of approximately GBP1.4 billion.
Shares in the Glasgow-based utility connection, smart metering and energy management provider surged up 41% to 958.00p on Thursday morning in London.
Shareholders will still be entitled to receive and retain the 8.32p per share second interim dividend, which SMS declared in mid-September.
The acquisition offer comes from various funds advised by American global investment firm Kohlberg Kravis Roberts & Co LP, and its affiliates. KKR, Smart Metering said, will invest in the takeover largely through its USD17 billion fund KKR Global Infrastructure Investors IV, which is focused on critical infrastructure investments with low volatility and strong downside protection.
“KKR’s offer recognises the strength and resilience of our model and will ensure SMS has the necessary capital to accelerate and unlock its full growth potential,” said Tim Mortlock, SMS’s chief executive officer.
