TDR, I Squared Near Firm Bid for Aggreko as Platinum Circles

A consortium of TDR Capital and I Squared Capital is close to making a firm bid for Aggreko Plc, as rival buyout firm Platinum Equity also circles the power generator supplier, people familiar with the matter said.

TDR and I Squared are making final preparations on a binding offer for London-listed Aggreko ahead of a Friday deadline, the people said, asking not to be identified discussing confidential information. The private equity firms have been discussing a potential cash bid of 880 pence per share, valuing the company at about 2.25 billion pounds ($3.1 billion), according to a statement last month.

Meanwhile, Platinum Equity has made a preliminary approach to express interest in a potential takeover of the U.K. company, the people said. Aggreko is currently focused on negotiations with TDR and I Squared, so Platinum’s interest is seen as less likely to translate into a deal, the people said.

Shares in Aggreko rose as much as 7.8% in London trading Thursday. The stock was up 7% at 880 pence at 3:07 p.m., giving the company a market value of about 2.25 billion pounds. Deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said.

Representatives for Aggreko and TDR declined to comment, while spokespeople for Platinum and I Squared couldn’t immediately be reached for comment.

Aggreko offers rentals of power, heating and cooling equipment to clients in the energy, refining, construction and events industries. It has provided generators to the Glastonbury Festival, Britain’s annual marquee music event, as well as the 2018 Winter Olympic Games in South Korea.

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