(Alliance News) - Homeserve PLC said on Thursday it reached an agreement for a GBP4.08 billion takeover by Hestia Bidco Ltd, a subsidiary of Brookfield Infrastructure Partners LP.
Shares in Homeserve were up 10% at 1,161.00 pence on Thursday morning in London.
Brookfield has offered 1,200p per share in cash for each HomeServe share. This represents a 71% premium to HomeServe's closing price on March 23, being the last business day before the start of the offer period.
The offer is also 14% above Wednesday's closing price of 1,053p.
"Whilst the HomeServe board did not solicit an offer from Brookfield, they believe that the acquisition, at 1,200 pence per HomeServe share, reflects the strength of the HomeServe business and its future prospects," Homeserve said.
The Walsall, England-based home repairs company said HomeServe directors will unanimously recommend that shareholders back the deal.
By Heather Rydings; heatherrydings@alliancenews.com
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