Biffa takeover deadline extended as talks roll on

Energy Capital Partners has been granted an extension to the deadline for tabling a firm offer for waste management group Biffa.

Biffa told investors on Tuesday that Energy Capital requested an additional 28-day extension to the deadline for talks with potential financing providers to conclude, which the firm has agreed to.

FTSE 250-listed Biffa said it will now receive Energy Capital’s decision by no later than 5pm on 27 September.  

‘There can be no certainty either that an offer will be made nor as to the terms of any offer, if made. A further announcement will be made when appropriate’, Biffa added. 

Biffa shares fell today and were down 0.57 per cent or 2.20p to 386.00p this morning.

The waste management group received the takeover proposal at the beginning of June. 

Energy Capital’s proposal was priced at 445p per Biffa share in cash, valuing the company at around £1.36billion.

The offer represented a 37 per cent premium to Biffa’s closing price of 325p on 6 June.

HM Revenue & Customs is currently looking into Biffa’s accounts, which could potentially result in a £168million bill.

Biffa’s company accounts show it has so far set aside only £20million for this.

The investigation could also potentially complicate a bid by Energy Capital Partners.

No formal claim for tax has yet been lodged against Biffa, but accountant Ernst & Young has been drafted in to advise the company. Biffa said it believed it had a ‘strong defence’ earlier this month.