Expro International shares jumped by 9% yesterday as a private equity consortium led by Candover said it had agreed a £1.6bn buy-out of the oil and gas services company.
The sale of Expro, which employs 750 people in Aberdeen, follows the £906m private equity purchase of the city's Abbot Group four months ago.
While the offer was pitched at 1435p, Expro's shares settled at 1445p, up 123p, last night after speculation that another private equity or energy company would try to trump Candover's bid.
Candover's vehicle, Umbrellastream, formed with Goldman Sachs Capital Partners and AlpInvest Partners, is paying a premium of almost 55% to Expro's closing price on February 28, the day before the company announced it had received a takeover proposal.
Chris Fay, chairman, said: "Umbrellastream's cash offer provides Expro shareholders with certain value today and fairly reflects both the value that has been created during this period and the future potential of the group."
The offer is reported as being financed with around 50% equity and 50% debt, with private equity buyers forced to adopt a more conservative split for leveraged buy-outs because banks do not want to risk being left with loans on their own books.
Royal Bank of Scotland is among five banks underwriting the debt package.
A report last weekend claimed that Expro had received expressions of interest from the US buy-out firm KKR and French rival Technip.
Expro acknowledged it had been in discussions with Candover "as well as a number of other parties about their possible interest". It said one of those parties was still conducting due diligence but there could be "no certainty that a formal offer will ultimately be forthcoming from this party".
Analysts pointed to the advancing trend of private equity firms buying into the oil and gas services sector.
Keith Morris of Evolution Securities commented that, with oil at $112 a barrel, "it's a good place to be".
Candover has bought and sold stakes in oil and gas services firms Vetco International and Wellstream, among others.
Expro's turnover increased 73% to £519m last year, driven by organic growth in the North Sea and acquisitions in the Norwegian sector.
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