Waste management company Biffa receives unsolicited offer
High Wycombe-based waste management company Biffa plc has received an approach by USA-based investment company Energy Capital Partners, LLC to buy the business.
Following a period of discussion and negotiation, ECP's proposal is in respect of a possible offer at a price of 445 pence per Biffa share in cash, valuing the business at about £1.36 billion.
The Board of Biffa has indicated that should a firm offer be made on the same financial terms as the proposal it would be minded to recommend it to Biffa shareholders.
Biffa continues to trade well, with underlying performance being in line with the Board's expectations. Volumes have remained at expected levels. The company said that good progress continues to be made in delivering key strategic priorities including the integration of recent acquisitions, ramping up production of food grade recycled plastics, and developing energy from waste projects.
Biffa is currently the subject of an enquiry by HMRC regarding certain aspects of its landfill tax compliance. Biffa, which strongly refutes HMRC's concerns, is fully co-operating with HMRC and is receiving advice from Ernst & Young.
The potential liability could range from approximately £170,000 (based on the liability declared by Biffa to HMRC following an extensive review with Ernst & Young) up to a possible maximum of approximately £153 million (being the total amount of protective assessments issued by HMRC to Biffa for the period from March 2016 to March 2020) plus penalties and interest.
Last month, Biffa won the Recycling Business of the Year title at the Awards for Excellence in Waste and Recycling Management ceremony.
After having already been named Plastics Recycling Business of the Year earlier in the evening, Biffa went head-to-head with the winners of the metal, organic, wood and paper recycling categories to win the overall title.