North's main electricity supplier accepts takeover bid

The North's main electricity supplier, Viridian Group, has accepted a takeover approach by Bahrain-based investment company Arcapita Bank.

Viridian's Huntstown power station in Dublin

Under the deal, which values Viridian at approximately £1.62 billion (€2.39 billion), Arcapita Bank's Electricinvest Acquisitions Limited will acquire the entire share capital of the supplier.

Each scheme shareholder will receive 1,325 pence in cash for each share with a loan note alternative. Viridian also intends to pay an interim dividend of 11 pence per share with Viridian shareholders receiving, in aggregate, 1,336 pence per share.

In a statement the Veridian said it considered the terms of the takeover to be "fair and reasonable".

Viridian, which owns a power station in Dublin, is the holding company for Northern Ireland Electricity (NIE). Almost all of its income comes from the utility business, with the wires business contributing around 70 per cent. Other businesses include generation, supply and property.

At the end of March, NIE had around 760,000 customers.

Viridian's Energia arm supplies electricity to competitive non-domestic electricity markets on both sides of the Border and has a 25 per cent market share in the business electricity market on an all-island basis.

The company, which has gained a strong foothold in the Republic in recent years, said in May it was preparing well for the all-island single wholesale power market which starts in July 2007, after announcing a 24 per cent rise in full year earnings.