Assetco, the troubled group that owns London’s fire engines, has rebuffed a fresh takeover approach despite recently asking investors for emergency funding.
The AIM-listed firm, which has a 20-year contract to supply vehicles and equipment to the London fire brigade, is understood to have received a formal bid from an Arab investor after it turned to shareholders last month to help solve its short-term funding problems.
The offer, in the form of a letter to the Assetco board, indicated the mystery suitor was willing to pay more than 20p a share, a 25% premium to the company’s closing price of 16p on Friday.
It also proposed repayment of some of the company’s debts and further investment to expand operations in the Middle East.
Last year, Assetco agreed a £40m deal to provide firefighters to the UAE. It also runs an emergency services training centre in Abu Dhabi.
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The takeover approach was rejected in favour of raising £8m from shareholders. Assetco had broken off bid talks with another suitor just days previously. The company has run into difficulties after delays in a bank refinancing.
Assetco was spun out of British Gas a decade ago. It listed on the stock exchange in 2007, priced at 145p, and soon reached an agreement to provide back-up crew to London’s fire brigade in the event of staff shortages. It also supplies fire engines to Lincolnshire. The company declined to comment.