Alkane Energy, which mines methane gas from redundant Yorkshire coal mines, is to be sold to Balfour Beatty Infrastructure Partners for £61m in a recommended cash deal.
Alkane shareholders will receive 36p in cash for each share they hold, a 44 per cent premium to the closing price on Tuesday.
The group’s directors said the terms of the offer are fair and reasonable and they are unanimously recommending that Alkane’s shareholders accept the offer.
Balfour Beatty Infrastructure Partners, a fund which Balfour Beatty invests in, has already received irrevocable undertakings to accept the offer from 35 per cent of Alkane’s shareholder base.
Roger McDowell, chairman of Alkane, said: “This offer enables Alkane shareholders to realise value today in cash for their shares at a significant premium to the recent historical share price, which, in the board’s view, has been impacted by negative sentiment towards the energy industry and continued regulatory scrutiny. BBIP have a well-respected track record in the infrastructure sector and as a patient investor, will be able to support the company’s longer term growth ambitions.
“We believe that the offer is a good outcome for all Alkane stakeholders.”