Jacksonville-based APR Energy plc announced Monday it agreed to a buyout by a group of investment firms for 175 million British pounds, or about $253 million.
APR had announced three weeks ago it was in discussions about the buyout with a group that includes its largest shareholder, Fairfax Financial Holdings Ltd.
APR supplies interim power plants around the world and has been losing money the last two years, mainly because of write-offs from projects in risky countries that had to be abandoned.
“Following today's announcement we can now look forward to the future with renewed confidence. While we have enjoyed tremendous growth in the past, the markets we operate in by their nature can be unpredictable,” CEO Laurence Anderson said in the company’s announcement.
“Today's announcement brings to an end a period of uncertainty for the company and its shareholders,” APR’s Interim Senior Independent Director Haresh Jaisinghani said in the announcement. “Although APR Energy has built a good and differentiated business in an exciting and growing sector, it has become clear that a more sustainable and long term financial platform was required for the company to fulfil its ambitions.”
The investment group agreed to pay 175 pence per share in cash, or about $2.69, for each share of APR, which trades on the London Stock Exchange.
APR said the price represents an 87.7 percent premium to the company’s stock price on Oct. 2, before the news about the buyout negotiations was revealed. However, APR’s stock traded above 1,000 pence as recently as January 2014.
In addition to the stock purchase, the investment group has agreed to provide $200 million in recapitalization funding to APR after it buys the company.
The Monday morning announcement did not give any information about APR’s offices after the buyout.